Deepak Fertilizer in wait and watch mode on Saroj Poddar's counter bid for MCF

Updated: Jun 16 2014, 03:15am hrs
Vijay MallyaDeepak Fertilizer is keeping a tab on the counter bid of Saroj Poddar along with Vijay Mallya: Source (Reuters)
Deepak Fertilizer is not going aggressive at present on Mangalore Chemicals and Fertilisers (MCF) and has adopted a wait-and-watch strategy.

"We are keeping a tab on the counter bid of Saroj Poddar along with Vijay Mallya. We are in wait and watch strategy to see how that offer sails and then we will decide the next course of action," a source, who declined to be quoted, said.

The company is concentrating more on the gas supply crisis to its plant, sources indicated.

In mid-May Saroj Poddar-controlled Adventz Group joining hands with Vijay Mallya-owned UB group had announced a counter offer at a higher price than that offered by Deepak Fertilisers.

The Adventz and UB group made a combined offer to buy 26 per cent stake in Mangalore Chemicals at Rs 68.55 per share. Deepak Fertiliser had offered Rs 63 a share.`

But in the last trading session MCFL was much higher than the open offer price and closed at Rs 73.90 a share.

Adventz group's Zuari Fertilisers and Chemicals holds 16.43 per cent stake in Mangalore Chemicals and promoter United Breweries group 21.98 per cent.

Deepak Fertilisers' stake is about 26 per cent.

The complex fertiliser company is facing a severe crisis after the government stopped domestic natural gas supply to its plant in May.