United Breweries Ltd has bought out the minority stake of 35 per cent in Associated Breweries and Distilleries Ltd with the deal being finalised at a put option price of Rs 24 crore (Rs 240 million).
Earlier, the shareholders of UBL at the annual general meeting in September last year had approved the buy out of the minority stake of 35 per cent in ABDL for a sum not exceeding Rs 35 crore (Rs 350 million), the company said in a release in Mumbai on Monday.
The buy out was through an exercise of the put option, which existed with the erstwhile promoters of ABDL. The deal, after protracted negotiations, has been finalised at a revised put option price of Rs 24 crore, the release said.
The completion of the deal would be through an escrow account with UBL depositing Rs 24 crore in the account, which would be released on completion of formalities by the erstwhile promoters of ABDL with Maharashtra Industrial Development Corporation for perfecting the title to the property in favour of the company, it said.
UBL brought 65 per cent stake in ABDL in 2001 in the face of competition from international brewery majors for acquiring a controlling stake in the company, it said.
ABDL's brewing unit in Navi Mumbai has a capacity to produce 20 lakh dozen per annum and owns brands including London Pilsner, London No 1 Strong and Maharaja Lager Beer.
ABDL, which is a subsidiary of UBL, would become wholly owned subsidiary of UBL on completion of the transaction, which is expected to be consummated within the next 90 days.
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