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Stock Report
United Breweries Holdings to acquire 26% stake in Deccan Aviation Ltd
Posted On : 2007-05-31 07:40:32( TIMEZONE : IST )
United Breweries Holdings Ltd has announced that the Board of Directors of the Company at its meeting held on May 31, 2007, has approved the execution of binding term sheet relating to the subscription by the Company and / or its nominees, of up to 35,222,231 freshly issued equity shares of Deccan Aviation Ltd at INR 155 per equity share. The said 35,222,231 would constitute 26% of the fully diluted equity share capital of Deccan Aviation Ltd & would be issued through a preferential allotment to the Company or one or more of its nominees, subject to the receipt of all necessary approvals including the shareholders of Deccan Aviation Ltd.
The Board has appointed Messrs. Vijay Mallya, Ravi Nedungadi and Harish Bhat to undertake all actions necessary to consummate the acquisition contemplated in the said term sheet in accordance with definitive documentation to the executed pursuant thereto.
The Board has further resolved to nominate its wholly owned subsidiary, Kingfisher Radio Ltd to acquire up to 9,677,419 equity shares of Deccan Aviation Ltd as an initial investment, in accordance with the said term sheet and the definitive documentation to be executed pursuant thereto. Kingfisher Radio Ltd has already made a payment of INR 150 crores as an advance on share application money for the said initial investment.
Pursuant to the terms sheet, the Company and / or one of is nominees shall enter into a shareholders agreement with Deccan Aviation Ltd and its promoters, which shareholders resolution shall take effect upon the acquisition by members of the UB Group of at least 26% of the shares of Deccan Aviation Ltd.
In accordance with the SEBI (Substantial Acquisition of Shares & Takeovers) Regulations 1997, the Company shall in due course make an open offer to acquire at least 20% of the shares of Deccan Aviation Ltd from its public shareholders at a price of INR 155 per share in accordance with advice from legal counsel.
