The Karnataka High Court, on Friday, granted conditional permission to United Breweries (Holdings) Ltd. (UBHL) to sell 1.36 crore shares of United Spirits Ltd. (USL) to Diageo Plc as part of the USL-Diageo deal.
Justice Ram Mohan Reddy passed the interim order on the application filed by UBHL, , seeking permission to sell these shares during the hearing of petitions filed by companies such as IAE International Aero Ltd, RRPF Engine Leasing, Rolls-Royce and Partners Finance and Avions De Transport Regional GIE and PNB Paribas and others.
The court did not accept some of the objections raised by the unsecured creditors of UBHL.
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Finding that there was nothing wrong in arriving at the sale price of Rs.1,440 per share, the court permitted UBHL to sell these shares at the same value, besides permitting the company to make payments to the secured creditors disclosed in the company’s annual report of 2011-2012 from the sale consideration.
However, the court directed UBHL to deposit Rs.250 crore with the court’s registry immediately after receipt of sale consideration while directing the registry to keep the amount in a term deposit for one year in a nationalised bank.
The court also directed UBHL to retain the remaining sum with it without deploying the amount for its business activities subject to further orders of the court and not to create pledge, hypothecation, charge or encumbrance over it.
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But the court permitted the company to utilise the sale consideration towards legal expenses and to pay taxes incidental to the sale transaction.
Further, UHBL has been directed to submit to the court an audited statement of accounts over the repayment, expenses and tax paid by July 22.