MCF battle hots up again, Zuari Group makes fresh offer
The move comes some weeks after unsuccessful hostile open offers from both Zuari and rival Deepak Fertilisers to buy a controlling stake in Mangalore Chemicals & Fertilizers (MCFL).
By ET Bureau |
MUMBAI: The Kolkata-based Zuari Group on Friday launched yet another bid to take control of Mangalore Chemicals & Fertilizers, announcing a voluntarily open offer to acquire three crore shares of the UB Group firm at Rs 91.92 each.
The move comes some weeks after unsuccessful hostile open offers from both Zuari and rival Deepak Fertilisers to buy a controlling stake in Mangalore Chemicals & Fertilizers (MCFL).
If the open offer is successful, industrialist Saroj Poddar-led Zuari group will acquire 25.90% stake in MCF for Rs 282.19 crore.
Following the announcement, shares of MCFL jumped as much as 15% to Rs 98.35 on BSE on the buzz that Deepak Fertilisers could announce a counter offer in a few days. The share closed the day at Rs 90, up 5.46% from Thursday’s closing price of Rs 86.40. Deepak Fertlisers declined to comment on the market speculations.
Both Zuari, which is acting in concert with MCFL promoter Mallya, and Deepak had made open offers for the Bangaloreheadquartered chemical fertiliser maker in October.
After the offers closed on October 20, Deepak Fertilisers' stake in MCFL increased about 6% to about 32% and whereas Zuari-UB Group's combined stake stood at 38.4%.
On Friday, shares of Zuari Ago gained 4% to close at Rs 286 while Deepak Fertilisers rose 2.85% to Rs 135.50.
On Thursday, MCFL had announced the appointment of UB Group chairman Vijay Mallya's step-mother Ritu Mallya as a director of the firm with immediate effect. The move came within four days of liquor baron Mallya’s resignation as MCFL chairman.
The move comes some weeks after unsuccessful hostile open offers from both Zuari and rival Deepak Fertilisers to buy a controlling stake in Mangalore Chemicals & Fertilizers (MCFL).
If the open offer is successful, industrialist Saroj Poddar-led Zuari group will acquire 25.90% stake in MCF for Rs 282.19 crore.
Following the announcement, shares of MCFL jumped as much as 15% to Rs 98.35 on BSE on the buzz that Deepak Fertilisers could announce a counter offer in a few days. The share closed the day at Rs 90, up 5.46% from Thursday’s closing price of Rs 86.40. Deepak Fertlisers declined to comment on the market speculations.Both Zuari, which is acting in concert with MCFL promoter Mallya, and Deepak had made open offers for the Bangaloreheadquartered chemical fertiliser maker in October.
After the offers closed on October 20, Deepak Fertilisers' stake in MCFL increased about 6% to about 32% and whereas Zuari-UB Group's combined stake stood at 38.4%.
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On Friday, shares of Zuari Ago gained 4% to close at Rs 286 while Deepak Fertilisers rose 2.85% to Rs 135.50.
On Thursday, MCFL had announced the appointment of UB Group chairman Vijay Mallya's step-mother Ritu Mallya as a director of the firm with immediate effect. The move came within four days of liquor baron Mallya’s resignation as MCFL chairman.
The battle for MCFL between Deepak Fertilisers and Zuari Group started in April 2013 when the latter bought about 10% stake in MCFL through the open market. In July 2013, Deepak Fertilisers acquired a 24.46% stake in the firm. After this, Zuari Group increased its stake to 16.43% in the same month.
During the last day of price revision of the previous open offer, Deepak Fertilisers revised its offer price to Rs 93.60 per share from Rs 63 while Zuari Group revised it from Rs 68.55 to Rs 81.60.
A sharp rise in the stock price of MCFL during the previous open offer had raised eyebrows in the investment community and some market participants alleged that some white knight had accumulated shares in the company on behalf of someone to make sure the open offer failed.
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