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Deepak Fert buys 5.9% stake in MCFL for Rs 66 cr

Post open offer, Deepak has 31.25% stake whereas the rival Zuari-UB group combine, holds 38.4% stake

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Press Trust of India New Delhi
Last Updated : Nov 09 2014 | 11:02 AM IST
Deepak Fertilisers has bought an additional about 6 per cent stake in Mangalore Chemicals and Fertilisers Ltd (MCFL) for Rs 65.93 crore through an open offer, intensifying its takeover battle with Zuari Group.

The company purchased 70,44,397 shares in MCFL equivalent to 5.94 per cent in the open offer closed on October 20, Deepak Fertilisers said. The company had launched open offer at a price of Rs 93.60 per share on October 1.

Post open offer, Deepak Fertilisers has 31.25 per cent stake in the company whereas rival Zuari-UB group combine, which had offered the counter bid at Rs 81.60 per share, could acquire only 48,000 shares and presently holds 38.4 per cent stake in MCFL.

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After the latest round of takeover battle, Zuari group along with Vijay Mallaya's UB group needs about 12 per cent additional stake in MCFL to take control of the company while at the same time Deepak Fertilisers would require more than 18 per cent stake in the MCFL.

Both open offers were started on October 1 and closed on October 20.

The battle for MCFL between Deepak Fertilisers and Zuari Group was triggered in April 2013 when the latter bought about 10 per cent stake in MCFL through open market.

Later, Deepak Fertilisers acquired 24.46 per cent stake in MCFL in one-go in July 2013. After this, Zuari group had increased its stake to 16.43 per cent in the same month.

Mangalore Chemicals takeover battle got heated up again after the Competition Commission of India (CCI) cleared an open offer launched by Zuari Group firms on September 4. The CCI had cleared the open offer of Deepak Fertilisers on August 19.

Zuari Agro Chemicals had also entered into an agreement this year to use Mangalore Chemicals's facilities for contract production.

Also, MCFL in a BSE filing on October 1 said that the company had shut its urea plant due to expiry of permission given by the government for production of farm nutrient from high cost feedstock naptha.

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First Published: Nov 09 2014 | 10:45 AM IST

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