Mangalore Chemicals rallies about 16% on Zuari group open offer

NEW DELHI: Mangalore Chemicals and Fertilizers Ltd rallied as much as 14.1 per cent in trade on Friday, after Kolkata-based industrialist Saroj Poddar-led Zuari group said that it will spend upto Rs 282.19 crore to buy over three crore shares in UB Group firm Mangalore Chemicals and Fertilizers Ltd (MCFL) through a new open offer.

On the NSE, the stock gained 15.62 per cent to Rs 99.90.

The voluntary open offer for 3.07 crore MCFL shares constitutes 25.90 per cent of the company's fully diluted voting equity share capital, PTI reported.

The open offer price of Rs 91.92/share represents about 7 per cent premium to MCFL's closing price of Rs 86.15 on Thursday, added the report.

The offer is not conditional upon any minimum level of acceptance. It sets the stage for another bidding war for control of MCFL, which is target of an intense takeover battle between Zuari group and Pune-based Deepak Fertilisers.