UB gets 7% Herbertsons stake through open offer

Kishore Chhabria gets 3%

The Vijay Mallya-controlled UB group has acquired over 7 per cent of the share capital of Herbertsons through the open offer, while Kishore Chhabria has acquired less than 3 per cent, sources close to the development said.

The open offer by both the parties for Herbertsons closed on January 30 scripting a new chapter in the decade-old battle for control of Herbertsons, the liquor company which owns the country's largest whisky brand, Bagpiper. The company is currently managed by the UB group.

Last month, as part of their broader pursuit of an out of court settlement, liquor barons Vijay Mallya and Kishore Chhabria decided to raise their open offer price for Herbertsons, the company they are battling over, to Rs 216.50 per share. The two agreed that one should not offer a higher price than the other.

While Chhabria's open offer was only for the mandatory 20 per cent of the company, Mallya had made an offer for 45 per cent of the paid-up capital of the company.

Mallya holds around 30 per cent in the company, while over 49 per cent is held by Kishore Chhabria, who controls BDA, which owns India's second largest whisky brand Officer's Choice.

Sources added that both the liquor barons are in discussions to either buy or sell stake their respective stakes in Herbertsons. However, so far no deal has been struck.

If Mallya is successful, then Herbertsons would come into the fold of UB group's spirits business while its subsidiary BDA will go to Chhabria.

However, the board of UB group is not in favour of Mallya divesting his stake in Herbertsons.

If both the parties finally reach a settlement, curtains would come down on the long drawn battle for Herbertsons. Both the parties have time to resolve the issue before February 13 when the case comes up for hearing at Supreme Court.

Kishore Chhabria after splitting with his brother Manu Chhabria walked away with BDA that owns officers Choice whisky and joined hands with rival Mallya.

Mallya in return gave Chhabria a 26 per cent stake in Herbertsons with BDA becoming a wholly-owned subsidiary of the company.

Later on, Chhabria quietly hiked up his stake to the company to over 49 per cent stake. Herbertsons is the third largest spirits company in India after UB group's McDowell &Co and the late Manu Chhabria's Shaw Wallace.