 "Deepak Fertilisers might sell stake in MCF")
According to sources, Deepak Fertilisers has approached Zuari to sell shares in its favour as it no longer sees any merit to pursue the battle for control of MCF.
Poddar said, “I have been approached by several shareholders expressing interest to sell their shares in the open offer. Once we get the CCI approval, we expect to close the deal in a month.”
An analyst said, “If we look at the share price of MCF, it has consistently been lower than the open offer price and it will stay like that as there is no counter bid. Tendering shares in the open offer is the best option.” The new offer, Rs 92 a share, amounts to Rs 398 crore.
When asked if he has been approached by Deepak Fertilisers, Poddar said the rival bidder might be waiting for the price to improve.
Deepak Fertilisers can’t tender its shares to Zuari beyond the open offer. According to Sebi rules, Zuari can’t buy more than five per cent from the market through the creeping acquisition route.
Deepak Fertilisers’ chief financial officer, Somnath Patil, refused to comment.
In December last year, Poddar had raised the size of his open offer for Mangalore Chemicals’ stock from 25.9 per cent to 36.56 per cent.
After that, Deepak Fertilisers sold a 2.2 per cent stake in MCF.
With the sale, Deepak Fertilisers’ stake came down to 29 per cent in MCF. Vijay Mallya-led UB Group has a 21.97 per cent stake and its partner, Poddar’s Adventz group, has 16.47 per cent in MCF. Poddar had earlier told Business Standard that he wanted to increase the stake to 75 percent along with the UB group. With Deepak now willing to sell shares to Zuari, it seems that Poddar will get controlling stake soon.
BATTLE FOR CONTROL
- The battle for control of Mangalore Chemicals and Fertilizers seems reaching a climax, with rival bidder Deepak Fertiliser willing to sell its stake in MCF
- An open offer from Zuari has got an approval from Sebi and is waiting for a nod from the Competition Commission of India