The UB Group has termed the order of the Securities and Exchange Board of India (Sebi) asking its chairman Vijay Mallya and his associates to divest their holdings in Herbertsons as favourable.
"In fact the order is favourable to us because our holding will now be higher than that of the Chabbrias," UB Group's president, finance, A K Ravi Nedungadi said. He said the group will firm up their plan after examining the Sebi order.
The market regulator in its order on February 19 asked both UB Group chairman Vijay Mallya and his associates and Kishore Chabbria and Manu Chabbria to divest their holdings in Herberstsons Ltd which they acquired in violation of listing agreements and takeover regulations.
The regulator said Mallya and associates should divest 5 to 6 per cent of their holdings to around 21 per cent, while the Chabbrias should divest their holdings to 10 per cent from around 47 per cent.
Nedungadi said the new development ensures that Mallya and associates will hold a higher equity than the Chabbrias. "We will have better control of Herbertsons," Nedungadi said.
