UB Group plans to sell off its stake in South Africa-based United National Breweries (UNB) to a management led buyout headed by UNB CEO, Rajan Ranganathan.

According to sources, the deal size is estimated to be roughly US$16m, although the group has not offered any figures.

UNB, formerly known as the National Sorghum Breweries, specialises in sorghum beer. The company was acquired by the UB Group through its investment arm UB Holdings a decade ago. During this period UB Group's stake in INB has steadily increased from 34% to 75%.

One of the major reasons for UB's exit is reportedly the declining popularity of Sorghum Beer in the South African Market. Even though UNB had been turned around, the long-term prospects for the company remain shaky.