Zuari Fertilisers' hikes stake in Mangalore Chemicals to 16.43 per cent

NEW DELHI: Zuari Fertilisers & Chemicals has increased its stake in UB group's Mangalore Chemicals & Fertilisers to 16.43 per cent, intensifying battle with Deepak Fertilisers for takeover of the Vijay Mallya-promoted firm.

In a filing to the BSE, Mangalore Chemicals and Fertilisers Ltd (MCFL) today informed that Zuari Fertilisers has bought 35,77,255 shares on July 11 and 12 through open market. On July 10, Zuari had bought 43,68,067 shares of MCFL.

Post these transactions, Zuari Fertilisers' stake in MCFL has increased to 16.43 per cent from 9.72 per cent, while rival Deepak Fertilisers and Petrochemicals Corporation picked up 24.46 per cent stake in MCFL for Rs 179 crore from open market earlier this month.

Promoter UB Group has about 21 per cent stake in MCFL. Saroj Poddar-led Zuari had first acquired 9.72 per cent stake in MCFL for Rs 44.3 crore in April.

All the three companies compete with each other in the fertiliser business, but huge debt burden of Vijay Mallya-led group has led to speculations about Mangalore Chemicals & Fertilisers (MCFL) being an apparent takeover target for rivals Zuari and Deepak Fertilisers.

Any direct or indirect acquisition of shares amounting to 25 per cent or more stake in a listed company triggers a mandatory open offer by the acquirer for public shareholders.

Deepak Fertilisers has already become the biggest shareholder in MCFL.

Shares of MCFL closed at all-time high of Rs 70.05 yesterday on BSE, up by 3.24 per cent from previous day. Its market cap stands at Rs 830 crore.