UB to buy United Distillers from venture

United Breweries Holdings Ltd will be buying the 50 per cent stake held by United Distiller Plc of Scotland in its 50:50 joint venture, United Distillers India. The company was set up exclusively for scotches and has a distilling plant at Nashik.

Ravi Nedungadi, CFO, UB group said, "The joint venture agreement was for a specific period of around 10 years. This agreement is about to come to an end. We are buying them out at the end of this agreement. We should be paying around Rs 2 crore to buy them out."

A statement from UB Holdings said: "The company's joint venture Partner United Distillers (UD) has expressed its intention to sell its holding to the company in terms of the agreement and the company considers this as a potential investment in the long term interest of the company."

"Accordingly the board at its meeting held on Wednesday - July 29, 2004, felt that the Company should acquire the remaining 50 per cent offered for sale by UD, and necessary step be initiated in this regard including securing the consent of the members at the ensuing general body meeting through a special resolution and other regulatory approvals," the statement said.