{"id":250229,"date":"2021-06-23T17:10:37","date_gmt":"2021-06-23T11:40:37","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=250229"},"modified":"2021-07-31T09:07:48","modified_gmt":"2021-07-31T03:37:48","slug":"united-breweries-acquisition","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/06\/23\/united-breweries-acquisition\/","title":{"rendered":"SEBI | Kingfisher\u2019s chopped wings and shrinked wingspan | United Breweries Acquisition | Heineken exempted from the obligation under Takeover Regulations with exceptions"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Securities and Exchange Board of India (SEBI):<\/strong> S.K. Mohanty, Whole Time Member, exempted Heineken International B.V from the obligation to make an open offer under Regulation 3(2) read with Regulation 3(3) of the Takeover Regulations, 2011 with respect to the proposed acquisitions of transfer shares of United Breweries Limited.<\/p>\n<p style=\"text-align: justify;\">In the instant case, Heineken International B.V (Applicant and Acquirer)\u00a0 had sought an exemption from the applicability of Regulation 3(2) and Regulation 3(3) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 ( \u201cTakeover Regulations, 2011\u201d) in the matter of its proposed acquisition of a maximum number of 3,96,44,346 equity shares ( \u201cTransfer Shares\u201d) of the Target Company from the Recovery Officer of the Bangalore Debt Recovery Tribunal ( \u201cBangalore DRT\u201d), under whose custody the Transfer Shares owned by the VJM Group were being held. Considering the unique issue and a further need for clarification and interpretation of the provisions involved in the application, the matter was recommended to a Panel of Experts, where they granted exemption subject to their compliance to the proviso.<\/p>\n<p style=\"text-align: justify;\">Therefore, the tribunal took note of the opinion of the Panel and noted,<\/p>\n<p style=\"text-align: justify;\"><em>\u201c\u2026that the Recovery Officer is holding these shares in pursuance of the order of Debt Recovery Tribunal and it remains a mere technical requirement since the transaction would have been otherwise exempted under regulation 10 (1) (a) (ii) of the Takeover Regulations, 2011&#8230;\u201d. <\/em><\/p>\n<p style=\"text-align: justify;\">Further,<\/p>\n<p style=\"text-align: justify;\"><em>\u201c\u2026I also note that the Transfer Shares were originally held by the group companies of the promoter VJM, who defaulted in paying the outstanding dues to various Public Sector Banks and other Financial Institutions led by the SBI Consortium. Further, despite lapse of sufficient years of time and opportunities granted, the aforesaid outstanding liability has not been honored. I also note that VJM has been declared as a Fugitive Economic Offender&#8230;\u201d.<\/em><\/p>\n<p style=\"text-align: justify;\">Thus taking the public policy and public interest involved in the entire transaction, and the continuous steps taken by the agencies over the years to recover the dues of the Public Sector Banks and other Financial Institutions, the tribunal regarded that proposed Acquisition had merit for consideration. Therefore, granted a limited exemption which:<\/p>\n<p style=\"text-align: justify;\"><em>\u201c\u2026shall not be construed as exemption from the disclosure requirements under Chapter V of the aforesaid Regulations; compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015, Listing Agreement \/ SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 or any other applicable Acts, Rules and Regulations\u2026\u201d.<\/em><\/p>\n<p style=\"text-align: justify;\">[United Breweries Limited v. Heineken International B.V., <a href=\"http:\/\/www.scconline.com\/DocumentLink\/u1E2zs18\"><b>2021 SCC OnLine SEBI 156<\/b><\/a>, decided on 22-06-2021]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Securities and Exchange Board of India (SEBI): S.K. Mohanty, Whole Time Member, exempted Heineken International B.V from the obligation to make an <\/p>\n","protected":false},"author":67011,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[46321,46320,29785,45635,46319],"class_list":["post-250229","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-heineken","tag-kingfisher","tag-law","tag-takeover-regulations","tag-united-breweries-acquisition"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SEBI | Kingfisher\u2019s chopped wings and shrinked wingspan | United Breweries Acquisition | Heineken exempted from the obligation under Takeover Regulations with exceptions | SCC 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|\u00a0Jammu &#038; Kashmir government exempted from Takeover regulations for the proposed acquisition of equity shares of Jammu and Kashmir Bank","author":"Editor","date":"August 5, 2021","format":false,"excerpt":"Securities and Exchange Board of India (SEBI): S.K. Mohanty, Whole Time Member, exempted the Government of Jammu and Kashmir, from complying with the requirements of Regulation 3(2) of the Takeover Regulations with respect to the Proposed Acquisition of 6.06% equity shares in the Target Company viz., Jammu and Kashmir Bank\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":244438,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/02\/26\/sebi\/","url_meta":{"origin":250229,"position":1},"title":"SEBI grants an exemption to &#8216;Pantone&#8217; from takeover norms with respect to acquisition of shares in Tata Communications Ltd.","author":"Editor","date":"February 26, 2021","format":false,"excerpt":"Security and Exchange Board of India (SEBI): S.K. Mohanty, (Whole Time Member) had granted exemptions to Pantone Finvest Ltd., from complying with the requirements of regulation 3(2) read with regulation 10(1)(a)(ii) of the Takeover Regulations 2011 with respect to direct acquisitions in Tata Communications Ltd. Pantone Finvest Ltd. had proposed\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":220578,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/10\/07\/sebi-acquisition-violating-takeover-regulations-allowed-where-objective-of-the-proposed-acquisitions-was-to-streamline-succession-and-promote-welfare-of-promoter-family-no-prejudice-to-interest-of\/","url_meta":{"origin":250229,"position":2},"title":"SEBI | Acquisition violating Takeover Regulations allowed where objective of proposed acquisitions was to streamline succession and promote welfare of Promoter family, no prejudice to interest of public shareholders","author":"Bhumika Indulia","date":"October 7, 2019","format":false,"excerpt":"Securities and Exchange Board of India (SEBI): G. Mahalingam, (Whole Time Member) disposed of the application allowing exemption from the Takeover Regulations, 2011 when the proposed acquisition was not prejudicial to the public shareholding. An application seeking exemption from the applicability of, Regulations 3, 4 and 5 of the Securities\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":257596,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/11\/23\/sebi-exception-granted-for-gifting-shares-in-an-acquisition-proposed-acquirer-to-file-report-within-21-days-post-acquisition\/","url_meta":{"origin":250229,"position":3},"title":"SEBI | Exception granted for gifting shares in an acquisition| Proposed acquirer to file report within 21 days post-acquisition","author":"Editor","date":"November 23, 2021","format":false,"excerpt":"Securities and Exchange Board of India (SEBI): S.K. Mohanty, Whole Time Member, while deciding an order, granted exemption to the Anived Family Trust (Proposed Acquirer) from complying with the requirements of Regulation 3(2) of the Takeover Regulations, 2011 with respect to the proposed direct acquisition in the, Renaissance Global Limited\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":213040,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/04\/01\/sebi-public-announcement-of-open-offer-exempted-where-share-acquisition-is-a-non-commercial-transaction-and-part-of-a-private-family-arrangement\/","url_meta":{"origin":250229,"position":4},"title":"SEBI | Public announcement of open offer exempted where share acquisition is a non-commercial transaction and part of a private family arrangement","author":"Bhumika Indulia","date":"April 1, 2019","format":false,"excerpt":"Securities and Exchange Board of India (SEBI): The Board comprising G. 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Supriyajith Family Trust (Acquirer) filed an application under Regulation 11(1) the Securities\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":211682,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/03\/09\/sebi-exemption-from-public-announcement-of-open-offer-for-acquiring-shares-where-no-change-in-control-of-target-company-post-takeover\/","url_meta":{"origin":250229,"position":5},"title":"SEBI | Exemption from public announcement of open offer for acquiring shares, where no change in control of Target Company post-takeover","author":"Bhumika Indulia","date":"March 9, 2019","format":false,"excerpt":"Securities and Exchange Board of India: The Board comprising G. 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