IOC board to meet on Dec 22 for IBP merger

17th December 2004: The board of Indian Oil Corporation would meet on December 22 to consider the merger of its oil retailing subsidiary IBP Company. The board would meet on December 22 to consider the scheme of amalgamation of proposed merger of IBP Company, IOC informed the Stock Exchange (BSE) here. The board of IBP would meet on December 17 to consider the proposed merger, a senior IOC official said.

Grasim to acquire stake in Idea

14th December 2004: Grasim Industries has informed BSE that the company and other investors of Idea Cellular have signed an agreement with the Consortium of Singapore Technologies, Telemedia (ST Telemedia) and TM International agreeing with the consortium to acquire the 47.7% stake in Idea. Under the terms of the agreement the consortium will acquire the entire stake from Cingular Wireless and simultaneously put additional capital into Idea. Upon the completion of the transaction, the Consortium will become the single largest shareholder of Idea with a 47.7% stake.

The Indian shareholders will continue to collectively own a majority 51% stake (the Aditya Birla Group with 26.3%, and the Tata Industries with 24.7%). As a result, the Company's shareholding will reduce from 7.6% to 5.9%. The transaction is subject to usual closing conditions and government approvals. The transaction of the Consortium acquiring 47.7% stake in Idea is anticipated to be completed in the first quarter of 2005. On completion of the transaction, the Consortium and the Indian shareholders will have an option arrangement that enables the Tata Industries and the Aditya Birla Group to sell, and the Consortium to purchase their shares in Idea, subject to certain Conditions being met, the exact details of which option will be provided upon Completion.

UB plans to merge 10 companies

11th December 2004: United Breweries Holdings (UBH), the holding company of the Rs. 4,500 crore UB group, is planning to merge 10 companies with itself as part of liquor baron Vijay Mallya’s consolidation drive. The UB board met today to consider the scheme of amalgamation. The companies that are part of the merger proposal are UB Networks (Bangalore), The Asian Age (South) Ltd, UB Global Corporation Ltd, UB Information & Consultancy Services, UB Transit Systems Ltd, UB General Investments Ltd, UB Pharmaceuticals Ltd, MWP Ltd, UB Publications Ltd, The Asian Age (West) Ltd and United Breweries of America.

UBH said in a notice to the Bombay Stock Exchange that it would allot equity shares to the shareholders of United Breweries of America (UBA) and British Virgin Islands, the holding company of UBA, following the merger. All these companies are subsidiaries of UBH. Large business interests are vested in UB Global Corporation, which is into exports, and UBA that looks after the beer business in US. When contacted Mallya said that he is in a board meeting and is not in a position to comment on the issue. Other senior UB group executives declined to comment. A UB spokesperson said that a media statement on the same would be issued tomorrow.

Mallya personally holds about 12.73% stake in United Breweries Holdings. Through a clutch of investment and associate companies he holds 28.11% in UBH. As per the data available on the Bombay Stock Exchange site, institutional investors hold 31.55% in the company, the public 18.60% and the balance is being held by others. Today, UBH stock opened on the BSE at Rs 88.10; touched an intra day high of Rs 89.50 and closed at Rs 86.40, down 1.31% compared its previous close of Rs 87.55.