Regulator allows special exemption as the shares are being acquired as part of an order of Debt Recovery Tribunal to recover dues from Vijay Mallya and his group companies
BS Reporter |
Last Updated at June 22, 2021 23:11 IST
Market regulator Sebi has exempted Heineken International from making an open offer to the shareholders of United Breweries (UB) for its proposed acquisition of 15 per cent shares. Heineken is a promoter entity in UB and normally such an acquisition would have triggered an open offer. However, the regulator has allowed a special exemption as the shares are being acquired as part of an order of Debt Recovery Tribunal (DRT) to recover dues from Vijay Mallya and his group companies.
“I find that it would be apt to grant exemption to the acquirer from open offer requirements as laid down in the regulations 3 (2) and 3 (3) of the Takeover Regulations. 2011,”SK Mohanty, whole time member, Sebi said in an order.
Sebi in its order observed that the shares proposed to be bought by Heineken were originally held by Vijay Mallya and group companies, who have defaulted in paying the outstanding dues to various public sector banks and other financial institutions. And the transfer of shares is part of the liquidation proceedings of the Bengaluru DRT.
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First Published: Tue, June 22 2021. 19:03 IST