Sebi seeks clarification on rival bids for Mangalore Chemicals

Jun 25 2014, 09:09 IST
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SummaryThe battle for Mangalore Chemicals started in April last year when Zuari Fertilisers bought about 10% in the company from SBI group entities in the open market.

Market regulator Sebi has sought a clarification from two rival bidders who have made offers for acquisition of additional stakes in Vijay Mallya-led UB Group’s Mangalore Chemicals and Fertilisers (MCFL).

The clarification has been sought from merchant bankers of two rival bidders Deepak Fertilisers and Zuari Fertilisers, among which the latter has been joined by the existing promoters of MCFL as 'persons acting in concert'.

According to latest Sebi data, the clarification was sought from JM Financial (merchant banker for Deepak Fertiliser group) on June 20. Prior to that, Sebi sought additional details on June 17 from ICICI Securities and Ambit Corporate Finance, who are acting as merchant bankers for Zuari in their proposed open offer for MCFL.

The reply was awaited for both the open offers, says the latest update on 'processing status of draft offer documents' filed with the capital markets regulator as on June 20.

It could not be ascertained whether there has been any developments since then and the next update would be provided by Sebi next week.

An open offer for acquisition of additional stake in a listed company can move forward only after issuance of 'observations' by Sebi.

The battle for MCFL started in April last year when Zuari Fertilisers bought about 10% in the company from SBI group entities in the open market.

Deepak Fertilisers followed with acquisition of a 24.46% stake in MCFL in July 2013. Zuari group then increased its stake to 16.43% in the same month.

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