Poddar again ups the ante in fight for MCF control

By: | Published: December 31, 2014 4:41 AM

In a bid that is bound to intensify the ongoing takeover battle, Adventz Group chairman Saroj Poddar has made an upward revision in his fresh...

In a bid that is bound to intensify the ongoing takeover battle, Adventz Group chairman Saroj Poddar has made an upward revision in his fresh open offer size for additional equity of Mangalore Chemicals and Fertilizers (MCF).

In a filing with the BSE on Tuesday, MCF said ICICI Securities (manager to the open offer) on behalf of Poddar’s Zuari Fertilisers and Chemicals (acquirer) and Zuari Agro Chemicals (persons acting in concert) has informed the upward revision in the offer size from 25.90% equity shares to 36.56% shares.

Based on the revised offer size, the maximum consideration payable under this offer at the offer price of R91.92 per equity share would be R398.28 crore. Poddar, UB Group chairman Vijay Mallya’s friend and ally, had announced the fresh open offer for 25.90% additional equity of MCF at an offer price of R91.92 per share in the first week of December.

The Mallya-Poddar combine and Deepak Fertilisers had both launched competing open offers for MCF that concluded last month. Upon conclusion of their respective open offers, Mallya and Poddar ended up with a 38% stake in the company, while Deepak Fertilisers held 32%.
Interestingly, the current open offer launched by the Adventz Group didn’t mention any of the UB Group companies or promoters as persons acting in concert, unlike the last open offer it had launched.

In a surprise move, Mallya resigned as MCF director on December 1. The Bangalore-based company, considered one of the last crown jewels of the liquor baron, did not cite any reason for his resignation.

Zuari sources, however, said he stepped down from the board for the “best interest of MCF”.

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