 "Zuari group firming up plans to consolidate MCFL stake")
Zuari is competing with Pune-based Deepak Fertilisers for snapping up majority stake in Mangalore Chemicals and Fertilizers Ltd (MCFL). Currently, both entities have substantial stakes in MCFL.
According to an official at Zuari group, various options would be weighed to hike stake in MCFL if the proposed revised open offer for acquiring additional 36.56 per cent stake does not fully materialise.
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On April 1, the Competition Commission of India (CCI) had approved Zuari's revised open offer to acquire up to 36.56 per cent stake in MCFL for Rs 398.2 crore.
Deals involving substantial acquisition of shares in companies need to be approved by the CCI.
Zuari group has informed the CCI that they also intend to complete the acquisition of 36.56 per cent additional stake within two years by way of "market purchase, creeping acquisition or another subsequent open offer".
This would be done "as long as the total aggregate shares to be acquired, under one or more of the aforesaid modes of acquisition, do not exceed the number of shares specified in the open offer i.E. Up to 36.56 per cent stake in MCFL," the CCI had mentioned in its recent order citing the submission made by Zuari group.
The two-year period would begin from the day of receiving the CCI approval.
A two-way battle is going on between Zuari group and Deepak Fertilisers for takeover of MCFL.
At the end of December 2014, Zuari Fertilisers & Chemicals Ltd -- which is part of promoter group -- held 16.47 per cent stake in MCFL while that of Deepak Fertilisers stood at 29.05 per cent.
Vijay Mallya-led UB group has over 21 per cent stake in MCFL.