Tying up with UB Group chairman Vijay Mallya, Adventz Group chairman Saroj Poddar on Tuesday jointly came up with a counter offer for Mangalore Chemicals & Fertilizers in order to prevent Deepak Fertilisers and Petrochemicals from taking a controlling stake in the Bangalore-based company.
Poddar, joining hands with Mallya, launched a counterbid at Rs. 68.55 to acquire 26% stake in Mangalore Chemicals as against Sailesh Mehta-run Deepak Fertilisers’ open offer at Rs. 63 per share.
Poddar’s Zuari Agro Chemicals informed BSE in a filing that the committee of the board of directors of the company, in its meeting on May 12, considered and passed resolutions in respect of entering into an agreement with Zuari Fertilisers and Chemicals and the promoters of Mangalore Chemicals to participate in the management of the Mallya-controlled company and exercise voting rights as per the terms of such agreement.
Zuari Fertilisers and Chemicals is a wholly-owned subsidiary of Zuari Agro Chemicals.
“Pursuant to the execution of the aforesaid agreement, the Acquirer has issued a Public Announcement in accordance with Regulation 15(1) of the Securities and Exchange Board of India for an open offer to acquire up to 3,08,13,939 equity shares, representing 26% of the fully diluted share capital of the Target at a price of Rs. 68.55 per equity share. The Company is a 'person acting in concert’ in the aforesaid open offer,” the filing added.
Talking to FE on Saturday, Poddar had said he and Mallya were ‘working jointly’ to evolve a strategy for Mangalore Chemicals in order to thwart Deepak Fertilisers’ attempt to take over the Bangalore-based company.
Poddar had said a decision on launching a counter offer for Mallya-controlled Mangalore Chemicals would be taken either on Monday or Tuesday.
Upping the ante, Deepak Fertilisers and Petrochemicals had earlier raised its offer price from R61.75 to R63 per share for a 26% stake in MCF. The Sailesh Mehta-run company already has over 25% stake in Mangalore Chemicals.
“My team and Mallya’s team are working jointly. We will be doing something jointly to prevent Deepak Fertilisers from acquiring a 51% stake in MCF,” Poddar had told FE. At present, Poddar holds 16.43% stake in MCF through Zuari Fertilisers and Chemicals, while liquor baron Mallya’s UB Group, has about 22% stake in MCF.