United Spirits shares taken as Kingfisher collateral

Vijay Mallya’s stake in India’s United Spirits has declined after lenders to his troubled Kingfisher Airlines invoked shares pledged to them as collateral.

Lenders to Vijay Mallya’s cash-strapped Kingfisher Airlines have taken pledged United Spirits shares

In a filing to the Indian stock exchange on Wednesday, United Spirits said that IDBI Trusteeship Services had invoked 3.14 million pledged shares (2.17% stake) held by Mallya-owned United Breweries, parent company of Kingfisher, in United Spirits.

“The change in shareholding has occurred due to unilateral invocation of pledged shares by IDBI Trusteeship Services in its capacity as trustees for the lenders of Kingfisher Airlines,” the filing said.

The investment arm of Mallya’s United Breweries is now left with a 3.31% in United Spirits, compared to a 5.48% stake held previously.

The news also comes on the week that Diageo’s tender offer of £1.13 billion to acquire an additional 26% of United Spirits closes, taking its total shares to 54%.

United Spirits owns Indian whisky brand McDowell’s, which until recently was the world’s best selling whisky brand.