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UB Holdings To Raise USD 300 Million For United Spirits

manreadingAccording to a report by Urvashi Jha of Financial chronicle, UB Holdings will raise USD 200-300 million for United Spirits, its flagship liquor division, by October 2009 and will raise more funds for the cash-strapped Kingfisher Airlines by March 2010. During the company’s annual general meeting (AGM) in Bengaluru, Vijay Mallya, Chairman, UB Group, said, “I have many options with regard to raising funds for United Spirits. I have the treasury stock, the qualified institutional placement (QIP) route and also private equity options. It may be a combination of two or three of these options too.” With regard to Kingfisher Airlines, Mallya assured his shareholders at the AGM that the carrier would achieve breakeven next year.

The company had earlier said that it is looking to raise Rs 500 crore by way of a rights issue or follow on public offer. Earlier, United Spirits had raised Rs 1,000 crore by selling 10.3 million shares of treasury stock. United Spirits has a debt of Rs 6,500 crore. In May 2007, UB raised a debt of Pound 595 million for buying Scotch major Whyte & Mackay. In August 2009, the talks with Diageo, the world’s largest liquor player, had failed. The British company was to buy 15 per cent stake in Mallya’s United Spirits (USL) and the two companies were in talks since early this year for the sale of USL’s treasury stock.

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Thursday, December 14, 8:51 pm

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