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Zuari Agro chief Saroj Poddar is set to meet Vijay Mallya to finalise management control of Mangalore Chemicals and Fertilizers (MCF). With successful closure of the open offer by the Zuari group, the company is slated to get majority control of the UB Group-promoted company.
“The agreement between Zuari and Vijay Mallya stands as of today and I have no problem in working with him. But keeping the changed scenario in mind, we will meet and decide over the future of the company,” Poddar told Business Standard.
The meeting will take place in the last week of May. By changed scenario, Poddar was referring to the majority control Zuari will now enjoy in MCF after buying 36.56 per cent equity of the latter in the open offer. After these shares are transferred Zuari's stake in MCF would increase to 53.03 per cent, from the current 16.47 per cent. Mallya’s UB Group holds 21.97 per cent. Mallya had to resign from the MCF board last December as the company was facing difficulties in raising funds due to his ‘wilful defaulter’ tag.
The open offer from Zuari, which ended last week, got a favourable response from the shareholders. “52.30 million shares were tendered in the open offer, which means it was oversubscribed but according to the law, we can acquire only 36.56 per cent,” said Poddar.
For about two years, MCF has been embroiled in a fierce takeover battle, after Poddar acquired 9.72 per cent of its shares. In response, Pune-based Deepak Fertiliser launched a hostile takeover bid. Last December, Zuari Fertilisers and Chemicals made the offer in concert with Zuari Agro Chemicals, another firm owned by Poddar. Further, the size of the offer was increased from 25.9 per cent to 36.56 per cent. Deepak decided to cash out by selling shares in phases, bringing down its stake to 6.43 per cent from 31.25 per cent.
