With two competing open offers for the Vijay Mallya-controlled Mangalore Chemicals and Fertilisers (MCF) awaiting necessary approvals, the Securities and Exchange Board of India (Sebi) has allowed a proposal to facilitate uniform timelines for both the offers in order to protect the interests of investors. The two rivals would now be able to launch their offers within 12 days after receiving approvals from the Competition Commission of India.
Deepak Fertilizers had announced an open offer for a 26% stake in MCF, following which Zuari Fertilizers and Chemicals, owned by the Saroj Poddar-led Adventz Group, teamed up with Mallya to make a counter offer. Zuari is offering to buy the 26% stake at R68.55 per share, while the offer from Deepak Fertilizers is for R63 per share.
The methodology for the timing of the offer was proposed at a meeting with representatives of the offer managers on July 21 to address the concerns regarding the coordination of the timelines of the original offer and the competing offer.