Khetan Group sells out stake in Bottlers Nepal
KATHMANDU, July 18:
In the largest-ever inter-company share trading, the Khetan Group sold out its entire stake in Bottlers Nepal Ltd (Balaju), the maker of Coca Cola carbonated drinks in Nepal, to Gorkha Brewery, a company whose 90 percent stake is owned by Dennish multinational brewer giant, Carlsberg Breweries.
The Khetan Group had a 22 percent stake in Bottlers Nepal Ltd (Balaju).
The leading business houses sold 428,805 units of shares worth Rs 725.1 million on Sunday, first day of the new fiscal year when reduced Capital Gain Tax (CGT) came into effect.
Gorkha Brewer is the largest beer maker in Nepal. In the new budget for the fiscal year 2011/12, the government has lowered the CGT on corporate share transactions to 10 percent from 15 percent. The group had bought the 22-percent stake at around Rs 300 million from Coca Cola Company last year.
The huge transaction jacked up the yawning Nepal Stock Exchange (Nepse) index by a whopping 19.18 points, highest gain in recent weeks, to 378.41 points on Sunday. Gorkha Brewery has paid Rs 1,691 per unit of the shares with a face value of Rs 100. Following the transaction, Bottlers Nepal (Balaju) now owns 75 percent stake in the company while 22 percent is owned by Gorkha Brewery and other stakeholders own the remaining 3 percent stake of the US multinational company.
The Khetan Group, which is a privately-owned business conglomerate, said the purpose for offloading the stake is to shift its investments to the financial sector from the manufacturing sector.
"Since we are planning to go for acquisitions of banks with Laxmi Bank, we sold the shares of Bottlers Nepal (Balaju) to mobilize at least Rs 5 billion we need for the purpose," Rajendra Kumar Khetan, chairman of Khetan Group told Republica.
The group also has sizable stakes in two leading commercial banks — Laxmi Bank and Himalayan Bank — besides stakes in Everest Insurance and Prime Life Insurance.
The group last year sold its 40 percent stake in Gorkha Brewery to Carlsberg Singapore for around Rs 3 billion that trimmed its equity in the company to 10 percent while remaining 90 percent is owned by Carlsberg Singapore.
Gorkha Brewery, a dominant brand in the beer market in Nepal, is the producer of Carlsberg Beer, Tuborg Beer, San Miguel Beer, and Gorkha Beer.
Source: Republica
In the largest-ever inter-company share trading, the Khetan Group sold out its entire stake in Bottlers Nepal Ltd (Balaju), the maker of Coca Cola carbonated drinks in Nepal, to Gorkha Brewery, a company whose 90 percent stake is owned by Dennish multinational brewer giant, Carlsberg Breweries.
The Khetan Group had a 22 percent stake in Bottlers Nepal Ltd (Balaju).
The leading business houses sold 428,805 units of shares worth Rs 725.1 million on Sunday, first day of the new fiscal year when reduced Capital Gain Tax (CGT) came into effect.
Gorkha Brewer is the largest beer maker in Nepal. In the new budget for the fiscal year 2011/12, the government has lowered the CGT on corporate share transactions to 10 percent from 15 percent. The group had bought the 22-percent stake at around Rs 300 million from Coca Cola Company last year.
The huge transaction jacked up the yawning Nepal Stock Exchange (Nepse) index by a whopping 19.18 points, highest gain in recent weeks, to 378.41 points on Sunday. Gorkha Brewery has paid Rs 1,691 per unit of the shares with a face value of Rs 100. Following the transaction, Bottlers Nepal (Balaju) now owns 75 percent stake in the company while 22 percent is owned by Gorkha Brewery and other stakeholders own the remaining 3 percent stake of the US multinational company.
The Khetan Group, which is a privately-owned business conglomerate, said the purpose for offloading the stake is to shift its investments to the financial sector from the manufacturing sector.
"Since we are planning to go for acquisitions of banks with Laxmi Bank, we sold the shares of Bottlers Nepal (Balaju) to mobilize at least Rs 5 billion we need for the purpose," Rajendra Kumar Khetan, chairman of Khetan Group told Republica.
The group also has sizable stakes in two leading commercial banks — Laxmi Bank and Himalayan Bank — besides stakes in Everest Insurance and Prime Life Insurance.
The group last year sold its 40 percent stake in Gorkha Brewery to Carlsberg Singapore for around Rs 3 billion that trimmed its equity in the company to 10 percent while remaining 90 percent is owned by Carlsberg Singapore.
Gorkha Brewery, a dominant brand in the beer market in Nepal, is the producer of Carlsberg Beer, Tuborg Beer, San Miguel Beer, and Gorkha Beer.
Source: Republica
