UB plans to merge 10 companies

United Breweries Holdings (UBH), the holding company of the Rs 4,500 crore UB group, is planning to merge 10 companies with itself as part of liquor baron Vijay Mallya's consolidation drive.

The UB board met today to consider the scheme of amalgamation. The meeting was on at the time of writing this news report.

The companies that are part of the merger proposal are UB Networks (Bangalore), The Asian Age (South) Ltd, UB Global Corporation Ltd, UB Information & Consultancy Services, UB Transit Systems Ltd, UB General Investments Ltd, UB Pharmaceuticals Ltd, MWP Ltd, UB Publications Ltd, The Asian Age (West) Ltd and United Breweries of America.

UBH said in a notice to the Bombay Stock Exchange that it would allot equity shares to the shareholders of United Breweries of America (UBA) and British Virgin Islands, the holding company of UBA, following the merger.

All these companies are subsidiaries of UBH. Large business interests are vested in UB Global Corporation which is into exports and UBA that looks after the beer business in US.

When contacted Mallya said that he is in a board meeting and is not in a position to comment on the issue. Other senior UB group executives declined to comment. A UB spokesperson said that a media statement on the same will be issued tomorrow.

Mallya personally holds about 12.73 per cent stake in United Breweries Holdings. Through a clutch of investment and associate companies he holds 28.11 per cent in UBH. As per the data available on the Bombay Stock Exchange site, institutional investors hold 31.55 per cent in the company, the public 18.60 and the balance is being held by others.

UBH stock opened on the BSE at Rs 88.10 today; touched an intra day high of Rs 89.50 and closed at Rs 86.40, down 1.31 per cent compared its previous close of Rs 87.55.