India: United Breweries approves merger of MBDL & ABDL

The Vijay Mallya-owned United Breweries approved the scheme of arrangement comprising of amalgamation of Mangalore Breweries & Distilleries Ltd (MBDL) and demerging of brewing business of Associated Breweries & Distilleries Ltd (ABDL) into the company, Asia Pulse announced on January 28

The Bangalore-based company leaped to world'snumber two spirits spot after buying a majority stake in local rival Shaw Wallace last year. The group is in the process of merging its domestic operations into one company, United Spirits.

The committee of directors, formed for this purpose, approved the composite scheme of arrangement and fixed the appointed date for the scheme to April 1, 2005, the company today informed the stock exchanges. In terms of the recommendation of the independent valuers, the company shall allot 1 fully paid up equity share of Rs 10 each in the company for every 40 equity shares of Rs 10 each held in MBDL, it said.

The company holds 98.30 per cent of the equity share capital of MBDL. Accordingly, equity shares will be issued to the remaining shareholders of MBDL. Since ABDL is a wholly owned subsidiary of the company, no equity shares would be allotted upon demerger, it said.

The scheme is subject to requisite consent, approval of the requisite majority of the shareholders, lenders and creditors of the companies, the High Court of Bombay and Karnataka. The scheme is subject to the permission of the Central Government or any other statutory or regulatory authorities, it added.

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