Liquor baron Vijay Mallya's UB group is going through a major consolidation. Its US-based subsidiary, United Breweries of America Inc, is being merged with group holding company United Breweries Holdings. The decision was taken at a UBH board meeting on Friday.
The board has approved the merger of UBA, a British Virgin Islands Company, which controls Mendocino Brewing Co, Inc in USA, and its subsidiaries in the UK.
As per the scheme, effective October 1, 2004, UBH will acquire two group companies, UBA and BVI, by allotment of shares to its sole shareholders, Watson Ltd, Mauritius. UBH holds the ultimate beneficial ownership of Watson Ltd, the company said in its notice to the stock exchange.
A swap ratio of 1 share of UBH for every 2 shares of UBA and BVI, has been agreed upon by the board. Haribhaki & Company and Sharp & Tannon Associates conducted the valuation of the UB group companies.
UBH has also announced the merger of 10 of its subsidiary companies, effective April 1, 2004, with itself. The group had floated multiple subsidiaries in the past to pursue a variety of business opportunities.
The rational behind restructuring move at this juncture, according to company, is to consolidate its group operations under one roof.
The wholly owned subsidiary companies that are being taken under the fold of the holding company include UB Networks, 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 and The Asian Age (West) Ltd.
Mallya personally holds about 12.73 per cent stake in UBH. Through a clutch of investment and associate companies he holds 28.11 per cent.
