As rival Deepak Fertilisers and Petrochemicals Corporation has given up on its takeover bid for Mangalore Chemicals and Fertilizers (MCF), the Saroj Poddar-led Zuari Group can now acquire control over the UB Group company just after the conclusion of its fresh open offer starting on April 21, according to industry observers.
Sailesh Mehta’s Deepak Fertilisers on Monday offloaded a little over 12% of its stake in MCF through bulk deals on the stock exchanges, a clear sign of its loss of interest in the Karnataka-based fertiliser manufacturer.
Market analysts further said Deepak Fertilisers may also sell its remaining 16% stake in MCF to cash out before or during the fresh open offer launched by Poddar. The Zuari Group last week announced the revised schedule to launch its voluntary open offer in order to acquire additional 36.56% equity of MCF.
“It is clear that Deepak Fertilisers has given up on its takeover bid for Mangalore Chemicals and it wants to cash out. Now, Zuari should be able to acquire control over the company after the conclusion of the open offer,” industry observers told FE.
Zuari Fertilisers and Chemicals, which is part of the promoter group, held over 16% stake in MCF, while the Vijay Mallya-led UB Group has over 21% stake in the company. Zuari has retained the price of its open offer at R91.92 per share.
Zuari Fertilisers and Chemicals made this offer in concert with Zuari Agro Chemicals, another firm owned by Adventz chief Poddar. Based on the offer size, the maximum consideration payable under this offer at the price of R91.92 per equity share would be R398.28 crore. The offer closing date is May 6.
Meanwhile, market analysts tracking Deepak Fertilisers said the Pune-based company may further offload its remaining 16% stake in MCF before or during Zuari’s open offer.