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A day after launching a joint open offer with Vijay Mallya to stall Deepak Fertilisers' bid for Mangalore Chemicals & Fertilizers (MCF), Zuari Agro Chemicals Chairman Saroj Poddar says he is confident of warding off his rival. In an interview with Digbijay Mishra, he says for the MCF bid, he hasn't sought any financial support from the Birla family. Edited excerpts:
There was a brief lull in the battle for MCF. How did the joint bid come about?
When I first bought the shares from Mallya, I had said I was interested in a joint venture with him for MCF. Subsequently, at the MCF annual general meeting, Mallya said he didn't want to divest his holding to Poddar or Mehta (Deepak Fertilisers), though Poddar was a friend. I thought if Mallya had changed his view, I would sell my stake to the highest bidder. My position hasn't changed since the first day. But Mallya never told me he wouldn't work with me; now, that is demonstrated.
The matter has been hanging fire for a year. Why make a move now?
It's very simple. He (Mallya) has done it because Deepak has made a bid. Either he makes a bid or we do it jointly because we have to stall Deepak's bid for MCF.
The Birlas have come out in support. How did that come about?
We have not sought any financial support from the Birla family in Zuari's bid for MCF, along with the UB Group. At a personal and family level, I have the highest respect and regard for the Birla family. But as far as business is concerned, Adventz is an independent group. The funding for the acquisition of MCF will be arranged entirely by the Adventz Group.
If Deepak revises the open offer price, will you counter that?
Sailesh Mehta has about 25 per cent and we have about 38 per cent stake in MCF. So, I already have 12 per cent more than Deepak. And, the management is with Mallya, and I am along with the management. So, Deepak has a longer way to go. I certainly believe we have a significant advantage at this point. Ultimately, only the market will determine the outcome.
Deepak Fertilisers has been in touch with Mallya on the MCF issue. Is the line of communication still open?
It is true Deepak has been in touch with Mallya. But Mallya has communicated his decision.
Deepak has been indicating keenness for an amicable solution. Are you interested?
No.
You have Mallya on board. Is there a sense of relief?
Now, the lines are drawn. Mallya told me 'I had always said I would work with you'.
What is the arrangement for MCF? Will Mallya exit?
Let me acquire MCF. As of now, it's a joint venture between Mallya and I; that is why there was a joint bid. MCF makes strategic sense to Zuari; I reiterate that.
You had sold a land parcel in the last quarter. Will that cash be used to fund the open offer?
That is for funding in Zuari, and Zuari will do whatever is required. The cash is available with Zuari now.
