Heineken's stake in United Breweries has risen from 46.50 % to 61.50 % because of this share transaction.

United Breweries Ltd saw a series of block trades on the markets on Wednesday, with about 39.64 million shares, representing a 15% interest in the business, changing hands, as per Bloomberg. The vendors' contact information was not provided.

Heineken NV has declared the buying of 39.64 million additional shares in United Breweries Ltd. Heineken's stake in UBL has risen from 46.50 % to 61.50 % because of this share acquisition.

On the BSE, United Breweries shares were already trading at 1,430, down 1.83 % from the last closure.

"It is encouraging and demonstrates the company's commitment to UBBL and the Indian beer industry. Heineken is excluded from making an acceptable deal due to SEBI clearance. This, in our opinion, may also exclude Heineken from an open bid if it wants to purchase the remaining 11 % UB Group stock committed with banks as quickly as it is allowed for its sale," Emkay Research stated in its research.

"More ownership may result in increased engagement and assistance from Heineken. However, UBBL is a well-managed business with market leadership, higher profitability than its competitors, and accessibility to Heineken's portfolio. As a result, we do not anticipate any substantial advantages within the medium term ", according to the Emkay study.

The Competition Commission of India authorized Heineken's acquisition of an additional ownership interest in United Breweries on Tuesday.

Despite a sharp drop in sales in FY21 due to Covid constraints, United Breweries has maintained its investment in brands and expanded its reach for branded products.

The latest annual reports also show investments in value brands to develop the category, significant reductions in fixed expenses, and a rise in water conservation and carbon footprint reduction measures.

Emkay's projections have been slightly modified. The brokerage company anticipates a bad first quarter owing to the lockdown, but anticipates a quicker rebound compared to FY21 due to benign taxes, early on-trade resumption, and ongoing immunization. The brokerage company says that valuations at 49x FY23 EPS are still appealing considering the upside risks to revenues from quicker recovery and favorable regulatory developments. It kept its purchase recommendation on the company and upped its target price to Rs.1570.

Previously, the debt collection tribunal in Bengaluru permitted the sale of shares promised to creditors of Kingfisher Airlines to recover loans. The tribunal authorized lenders to sell 39.6 million shares of United Breweries, 25 lakh shares of United Spirits, and 22 lakh shares of McDowell Holdings through block transactions on June 23rd, as per a 7 June judgment.

In a second decision, the tribunal declared the sale of yet another 1 crore United Spirits shares on June 25.

According to current market prices, the valuation of the pledged shares is roughly Rs 6480 crore. This will assist lenders headed by the State Bank of India in recovering loans from Kingfisher Airlines. PNB, IDBI Bank, and Bank of Baroda were amongst the other banks. The airline was grounded in 2012, and lenders have been seeking to recoup their losses since that time.