 "Zuari's Poddar launches fresh open offer for MCF")
The race to take over Mangalore Chemicals & Fertilizers (MCF) has entered a new phase with Kolkata-based Adventz Group, led by Saroj Poddar, launching yet another open offer for an additional stake in MCF.
However, Poddar’s Rs 91.92-a-share offer, aimed at warding off Pune-based rival Deepak Fertilisers and Petrochemicals Corporation, is still lower than Deepak Fertilisers’ recently closed open offer, by Rs 1.68. This offer has been calculated in accordance with the Sebi Takeover Regulations, Adventz said in a filing to exchanges, and it will cost Rs 282 crore more for an additional 26 per cent stake in MCF.
The latest open offer by Poddar excludes UB group and other Mallya entities, which are “persons acting in concert”.
Deepak Fertilisers had surprised the Poddar-Mallya combine by revising its open offer price aggressively at Rs 93.6 a share in late September. As of now, Deepak Fertiliser has a 31 per cent stake in the company, while Adventz and UB together hold 38 per cent.
The latest move of Poddar has propelled some bankers to put on their thinking cap as the new offer of Rs 91.92 a share might not yield a desired response from shareholders as it is priced lower than Deepak’s September offer.
According to analysts, once Poddar gets the required nods for the new open offer, he might revise the open offer price within the stipulated time. Following Poddar’s open offer, MCF scrip ended five per cent higher on the BSE at Rs 90.85 a share on Friday.
A source close to the development said that Sailesh Mehta-led Deepak Fertilisers was very much ‘interested’ in the company and it would be cautious of its next move.
MCF has been mired in a take-over battle for about a year now. It all started with Poddar acquiring 10 per cent stake in MCF in April 2013 and the tussle intensified when Deepak Fertilisers made a surprise entry in July 2013 by directly buying 24 per cent from the market. Poddar, too, bought more shares in two tranches to increase his stake to 16.43 per cent.
After a brief lull, Deepak Fertilisers raised its stake to 25 per cent in April 2014, triggering the mandatory open offer. After getting the regulatory nod, both the companies revised their open offers in which Deepak Fertilisers cornered six per cent of additional stake, taking its total stake to 31 per cent. Deepak’s offer was substantially higher at Rs 93.6 than Poddar-Mallya’s Rs 81.60 for each share.
Earlier this week, Mallya resigned from the board of MCF after bankers raised objections to his presence on the company in spite of his ‘wilful defaulter’ tag related to the collapse of Kingfisher Airlines. Mallya’s step mother Ritu Mallya, a lawyer by profession, has since joined the board of MCF.
It may be noted Poddar’s latest move has also provided steam to possible speculation of truce between the two. According to one of the bankers involved with the transaction, this development could end the stalemate between Deepak and Poddar and result in a compromise in the near future with one of the parties selling out. “The offer by Poddar is to test the waters for a compromise as Poddar is hoping that Deepak will sell out if he sweetens the offer at a later date,” said the banker who did not wish to be named.
However, Poddar’s Rs 91.92-a-share offer, aimed at warding off Pune-based rival Deepak Fertilisers and Petrochemicals Corporation, is still lower than Deepak Fertilisers’ recently closed open offer, by Rs 1.68. This offer has been calculated in accordance with the Sebi Takeover Regulations, Adventz said in a filing to exchanges, and it will cost Rs 282 crore more for an additional 26 per cent stake in MCF.
The latest open offer by Poddar excludes UB group and other Mallya entities, which are “persons acting in concert”.
Deepak Fertilisers had surprised the Poddar-Mallya combine by revising its open offer price aggressively at Rs 93.6 a share in late September. As of now, Deepak Fertiliser has a 31 per cent stake in the company, while Adventz and UB together hold 38 per cent.
The latest move of Poddar has propelled some bankers to put on their thinking cap as the new offer of Rs 91.92 a share might not yield a desired response from shareholders as it is priced lower than Deepak’s September offer.
According to analysts, once Poddar gets the required nods for the new open offer, he might revise the open offer price within the stipulated time. Following Poddar’s open offer, MCF scrip ended five per cent higher on the BSE at Rs 90.85 a share on Friday.
A source close to the development said that Sailesh Mehta-led Deepak Fertilisers was very much ‘interested’ in the company and it would be cautious of its next move.
MCF has been mired in a take-over battle for about a year now. It all started with Poddar acquiring 10 per cent stake in MCF in April 2013 and the tussle intensified when Deepak Fertilisers made a surprise entry in July 2013 by directly buying 24 per cent from the market. Poddar, too, bought more shares in two tranches to increase his stake to 16.43 per cent.
After a brief lull, Deepak Fertilisers raised its stake to 25 per cent in April 2014, triggering the mandatory open offer. After getting the regulatory nod, both the companies revised their open offers in which Deepak Fertilisers cornered six per cent of additional stake, taking its total stake to 31 per cent. Deepak’s offer was substantially higher at Rs 93.6 than Poddar-Mallya’s Rs 81.60 for each share.
Earlier this week, Mallya resigned from the board of MCF after bankers raised objections to his presence on the company in spite of his ‘wilful defaulter’ tag related to the collapse of Kingfisher Airlines. Mallya’s step mother Ritu Mallya, a lawyer by profession, has since joined the board of MCF.
It may be noted Poddar’s latest move has also provided steam to possible speculation of truce between the two. According to one of the bankers involved with the transaction, this development could end the stalemate between Deepak and Poddar and result in a compromise in the near future with one of the parties selling out. “The offer by Poddar is to test the waters for a compromise as Poddar is hoping that Deepak will sell out if he sweetens the offer at a later date,” said the banker who did not wish to be named.