In a boost to Zuari Group, the Competition Commission has approved its revised voluntary open offer to acquire additional 36.56 per cent stake in MCFL, for which it is locked in a takeover battle with Deepak Fertilisers.
Kolkata-based industrialist Saroj Poddar-led Zuari group had launched the open offer in December last year, which it later revised to Rs 398.2 crore to buy up to 36.56 per cent stake in Mangalore Chemicals and Fertilizers Ltd (MCFL), about 10 per cent more stake than its earlier offer.
Deals involving substantial acquisition of shares in companies needs to be approved by fair trade regulator CCI.
In a regulatory filing today, Zuari Agro Chemicals Ltd (ZACL) said Competition Commission of India (CCI) has approved its open offer for acquiring stake in MCFL.
The company had written to the Securities and Exchange Board of India (Sebi) for extension of the tendering period as it had not received the approval from CCI.
"The tendering period for the open offer may commence not later than 12 working days from the receipt of CCI approval, and the payment to all successful public shareholders who tender their equity shares in the open offer.." the company had said, quoting Sebi's letter, on March 12.
Two-way battle is going on between Zuari Group and Pune based 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 Fertilizers stood at 29.05 per cent. Vijay Mallya-led UB group has over 21 per cent stake in MCFL.
