Vijay Mallya is considering the sale of a portion of his stake in the flagship liquor business as Kingfisher Airlines' cash crunch continues to worsen and banks refuse to lend more money without equity support from the promoter.
People close to Mallya told ET that talks have begun withHeineken to sell a portion of the 40.57% stake owned byUnited Breweries Holdings, the main promoter company in United Breweries, the makers of Kingfisher. Heineken owns 37%, and could become the majority owner if the transaction fructifies.
Mallya is also open to the idea of selling a small stake in United Spirits, the makers of McDowell whisky. The promoters own about 28.01% in the company, but a massive chunk, about 91.45%, is pledged with financial institutions and banks.
Mallya's urgency stems from the enormous pressure being applied on him by banks to bring in equity and save Kingfisher Airlines from almost certain bankruptcy. The stricken airline has sharply reduced the number of daily flights, laid off a large chunk of its employees and shut down operations in some domestic and all international routes. Banks, which have lent the airline over 7,000 crore, have refused to give more money unless the promoters bring in money of their own.
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