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Lenders to United Spirits (USL) have over the past week encashed 425,010 shares, or 1.87 per cent of the enlarged base of the Vijaya Mallya-led spirits maker, and recovered around Rs 110 crore. Subsequently, Mallya's holding is little under 11 per cent in USL.
A week ago, when Diageo Plc announced the completion of acquisition of a stake in USL, the latter had said it had not been able to get 2.38 per cent of share capital released, pledged with the lenders. The UB Group said it was trying to get those shares released.
"It has not been possible to complete at this time the acquisition of shares from all of the sellers under the share purchase agreement as certain lenders to USL refuse to release security that they hold over certain number of shares held by the USL Benefit Trust, notwithstanding they have been repaid in full," UB Group had said. "USL believes this refusal is in clear breach of the applicable contractual arrangements," it had added.
