Signals, Powered By EquityPandit
United Breweries Ltd witnessed a series of block deals on the exchanges on Wednesday, with around 39.64 million shares, comprising a 15 per cent stake in the company, changing hands, Bloomberg reported. Details of the sellers were not available.
Heineken NV has announced that it has bought an additional 39.64 million shares in United Breweries Ltd. With this share purchase, Heineken’s shareholding in UBL has increased to 61.50 per cent from 46.50 per cent. United Breweries shares were currently trading at Rs 1,430 on the BSE, down 1.83 per cent from the previous close.
“(It) is positive and indicates its commitment and interest in UBBL and the Indian beer market. SEBI approval exempts Heineken from making an open offer. In our view, this may also exempt Heineken from an open offer if it intends to acquire the balance 11% UB Group stake pledged with banks, whenever it is approved for sale,” said Emkay Research in its report.
“The increase in ownership may drive higher involvement and support from Heineken. But UBBL is an efficiently run company with market leadership, stronger profitability vs peers, and access to Heineken’s portfolio. Hence, we don’t see material benefits in the medium term”, the Emkay report added.
On Tuesday, the Competition Commission of India approved Heineken’s additional equity stake acquisition in United Breweries.
The recent annual report also indicates investments in value brands to grow the category, substantial savings in fixed costs, and an increase in initiatives for water conservation and carbon footprint reduction.
Stock Covered in the news
