UTI-IAS acquires Mallya' 3.97% UBL voting rights after default

Unit Trust of India Investment Advisory Services Ltd (UTI-IAS) has acquired liquor baron Vijay Mallya's 3.97 per cent voting rights on pledged shares in United Breweries Ltd (UBL) following default.
Post this development, Mallya's voting rights in the company remain just 0.06 per cent.
As per a BSE filing today by United Breweries: "Unit Trust of India Investment Advisory Services in their capacity as the security trustee in relation to term loans secured by a pledge over 1.04 crore shares of the company, have acquired voting rights in relation to the pledged shares upon notification of occurrence of an event of default."

Voting rights in relation to 1.04 crore shares amount to 3.97 per cent and were acquired by UTI-IAS on May 11.
This was intimated to the company on June 5, as per the filing.
However, United Breweries added that while voting rights have been acquired, equity shares have not yet been acquired.

"The equity shares themselves have not yet been acquired as the pledge has not yet been invoked and these shares remain pledged to the acquirer," it said.
Mallya has been battling a number of cases, including against banks over 'willful defaulter' tag related to loan defaults by now defunct Kingfisher Airlines.

Earlier this year, a 17-bank consortium led by state-run SBI initiated the process of taking over physical possession of the prized Kingfisher House, worth Rs 100 crore.
Mallya has also been under scanner over issues at his various group companies, including United Spirits Ltd where he has sold the controlling stake to UK-based Diageo Plc.
In April, alleging fund diversion of Rs 1,337 crore, Diageo-owned United Spirits Ltd (USL) asked its erstwhile promoter and current Chairman Vijay Mallya to quit the board alleging fund diversion.
USL Board found various improprieties and legal violations in a probe into loans worth Rs 1,337 crore given by USL to UB Group firms.

Shares of United Breweries closed at Rs 909.05 apiece, up 1.17 per cent, on the BSE.