UTI picks up 8% voting rights in UB after default

The stake is worth Rs 1,950 crore

The Unit Trust of India has picked up voting rights for eight per cent stake worth Rs 1,950 crore in United Breweries, the beer joint venture between the Scottish & Newcastle and UB group, following a default to term loans.

In a filing with the stock exchange, UTI Investment Advisory Services said it has acquired eight per cent voting rights in the company in relation to pledged shares after notification of a default.

It said the shares itself have not been acquired as the pledge has not been invoked and these shares remain pledged to the acquirer.

Both the UB Group and S&N own close to 74.82 per cent stake in the company. Of this, S&N owns 39 per cent stake while the UB Group owns 35.81 per cent stake. Of its stake, UB Group had pledged 19 per cent of the company’s total equity to raise loans for the now collapsed Kingfisher Airlines, as per BSE's statistics.

United Breweries closed at Rs 922 a share on Wednesday with a market value of Rs 24,376 crore.

Vijay Mallya-owned UB Group is facing a liquidity crisis with banks seeking return of Rs 7,000 crore from the group.  The group did not comment on the default.