Dutch brewing giant Heineken has gained the right to control Vijay Mallya’s United Breweries (UB), the last big corporate concerned controlled by the troubled tycoon.
Heineken raised its shareholding in the company to over 42% after buying shares offloaded by United Spirits on Tuesday.
The latest share acquisition has freed Heineken from an agreement with Mallya based on equal shareholding , the Times of India reports.
Mallya’s stake has now fallen to 32%.
In 2009, Heineken and Mallya announced a partnership with both sides controlling a 37.5% stake each and enjoying equal representation on the company’s Board of Directors.
However, the troubles caused by Mallya’s Kingfisher airline and other woes has since given Heineken to slowly build up its stake in UB, which owns the Kingfisher brand of beer and holds a near 50% stake in India’s domestic beer market.
Heineken has reportedly been buying up shares pledged by Mallya as a guarantee for Kingfisher airlines as well as other minority stakeholders.
Representatives for Mallya insist that, despite its increased stake, Heineken is now in a rush to change the current management structure of UB.
Mallya enjoys cordial ties with the family-controlled Heineken.
However, the Dutch company’s move is the latest trouble to land on the flamboyant tycoon’s doorstep.
On Tuesday it was revealed that one creditor bank is preparing to take possession of Mallya’s sumptuous villa in Goa by the end of the month.
The villa is but one of numerous assets owned by Mallya that creditors are going after.
The property was pledged as a surety against the more than £700 million in debt owed by Mallya following the grounding of Kingfisher Airlines in 2012.