United Breweries reverses gains, slips 6% post huge block deals

Around 39.76 million shares, representing 15 per cent of the total equity of United Breweries changed hands on the BSE, the exchange data shows

Shares of United Breweries slipped 6 per cent in intra-day trade on Wednesday after nearly 40 million equity shares of the company changed hands via block deals on the BSE.

The stock of the breweries and distilleries company hit an intra-day low of Rs 1,410.90, falling 6 per cent from its 52-week high of Rs 1,497.65 touched earlier today. At 09:34 am, the stock was trading 1.5 per cent lower at Rs 1,433.70, as compared to a 0.09 per cent gain in the S&P BSE Sensex.

Around 39.76 million shares, representing around 15 per cent of total equity of United Breweries changed hands on the BSE, the exchange data shows. The names of the buyers and sellers were not ascertained immediately.

In the past three weeks, the stock of United Breweries has rallied 20 per cent, as compared to a 1.6 per cent rise in the S&P BSE Sensex.

On June 7, 2021, United Breweries informed the stock exchanges that the Deputy Director, Directorate of Enforcement (ED), Mumbai has transferred 41.31 million equity shares, constituting 15.63 per cent of the equity share capital of the company (out of 42.70 million equity shares constituting 16.15 per cent) to the Demat account of Recovery Officer I DRT-II. Earlier these equity shares were held by certain of our Promoter group Companies, the company said.

Meanwhile, market regulator Securities and Exchange Board of India (Sebi) on Tuesday exempted Heineken International from making an open offer to the shareholders of United Breweries for its proposed acquisition of 15 per cent shares. Heineken is a promoter entity in UB and normally such an acquisition would have triggered an open offer.

Earlier, the Competition Commission of India (CCI) on Monday has approved acquisition of additional equity shareholding by Heineken International BV (HIBV) of United Breweries Limited.

The proposed transaction relates to HIBV’s potential acquisition of additional equity stake up to a maximum of about 16.40 per cent shareholding in UBL, an official release said. CLICK HERE FOR PRESS RELEASE