Newcastle to raise stake in Millennium Alcobev

Scottish & Newcastle will increase its holding in Millennium Alcobev, the beer major's joint venture with Vijay Mallya's United Breweries from the present 40 per cent to 50 per cent.

The foreign beer maker will pay Rs 83.33 crore for the additional 10 per cent stake.

Scottish & Newcastle also has a 37.5 per cent holding in United Breweries, which it picked up for $171 million cash in this transaction - including $54 million in redeemable preference shares in United Breweries.

Finance minister P Chidambaram gave the approval to the deal today, as a part of 35 proposals - totalling an investment of Rs 183.35 crore - which were cleared today.

Chidambaram also approved the proposal of Flint Ink to increase foreign equity in Incowax from 54.96 per cent to 100 per cent by way of purchase of shares for Rs 10.8 crore.

Jardine Flemming India Holdings Ltd, Mauritius has also been allowed to invest Rs 22 crore in JP Morgan India to engage in merchant banking, corporate finance, stock broking and asset management.

Merrill Lynch (Mauritius) Investments Ltd plans to invest Rs 10 crore in DSP Merrill Lynch Ltd has also been approved by the finance minister.