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Carlsberg South Asia Pte Ltd (CSAPL), the Indian and Nepalese holding company in which Khetan Group is a partner, has received a formal notification from Khetan Group that it intends to sell its whole 33% ownership interest to the Danish brewer for US$744 million (Rs 6100 crore).
Carlsberg stated the following in its 2022 full-year worldwide financial statement: “The put option valuation process related to our partner’s 33% holding in the Indian and Nepalese holding company Carlsberg South Asia Pte Ltd (CSAPL) has been concluded.
“The partner has issued a formal put notice to sell his 33% shareholding in CSAPL to the group at the put option valuation amount of USD 744m. Consequently, the supervisory board has decided not to initiate a new share buy-back program this quarter.”
The company stated that there have been significant disagreements regarding the Carlsberg South Asia Pte Ltd (CSAPL), the holding company for the businesses in India (100%) and Nepal (90%), Shareholders’ Agreement between Carlsberg and its partner CSAPL Holdings Pte Ltd (CSAPLH), for a number of years.
Following complaints from its auditor over financial irregularities, including wrong payments, embezzlement, and bribes from customers, Carlsberg, which owns two-thirds of the holding firm and the remaining by CSAPLH, engaged in a boardroom conflict with Khetan Group.
According to ET Retail, the disputes were sent to arbitration in Singapore at CSAPLH’s request, and the arbitration panel granted a liability award in May of last year.
Carlsberg further noted that the company will work with its external advisors to evaluate its position and assess whether CSAPLH has committed additional breaches of the Shareholders’ Agreement, which would justify further legal steps against CSAPLH.
Meanwhile, the brewer expects to have found a buyer for its business in Russia and signed an agreement by June, according to Reuters. However, the company is seeking an option to buy back the business in the future.