UB finally gets Herbertsons reins

The Vijay Mallya-owned United Breweries group has finally got control over Herbertsons. Phipson Distillery, McDowell's wholly owned subsidiary, has acquired a 49.06 per cent stake in the third-largest spirits company for Rs 131.16 crore (Rs 1.31 billion).

The Herbertsons counter on the Bombay Stock Exchange on Tuesday witnessed a block deal of 44.53 lakh shares at Rs 280.70 a share.

The shares were sold by Kishore Chhabria group of companies -- Stingray Traders, Shirish Finance & Investment, Darrel Traders, Algid Investment and Finance, Veneer Investment & Finance, Mahameru Trading, Beethoven Traders, Airedale Investment & Traders and IMFA Holdings.

With this transaction, the UB group holding increases to 92.21 per cent in Herbertsons. The UB group plans to consolidate its spirits business under one umbrella -- United Spirits. The Bangalore-headquartered group's other spirits companies are vested in McDowell & Co and Triumph Distillers & Vintners.

Chhabria will get a total consideration of Rs 135 crore (Rs 1.35 billion), including dividend of Rs 3.84 crore (Rs 38.4 million). He also walks away with BDA that owns Officer's Choice whisky.