Shareholders in United Breweries (UB) have approved the sale of a major stake to Scottish & Newcastle (S&N). The Indian company will sell a 37.5% stake to the UK brewer.

The approval follows S&N's announced intention in December to buy the stake. S&N has said it will invest up to US$171m cash in the transaction, which includes around US$54m in redeemable UB preference shares.

Speaking to reporters, the chairman of UB, Vijay Mallya, said that the transaction would "unlock the shareholder value."

United Breweries owns India's largest beer brand, Kingfisher, which has a 33% share of the domestic market.