Poddar said a majority control in MCF doesn’t mean his pact with Mallya has ceased to exist
With Zuari Industries set to acquire a majority stake in Mangalore Chemicals and Fertilisers (MCF), Adventz Group chief Saroj Poddar will soon hold talks with UB Group chairman Vijay Mallya on the reshuffle of the MCF board.
Poddar will hold about 53% stake in MCF — till now a UB Group company — with the fresh open offer launched by his Zuari group to acquire an additional 4.33 crore equity shares, or 36.56% equity of the firm, getting oversubscribed.
“I am happy that Zuari is going to acquire a majority stake in Mangalore Chemicals,” Poddar told FE. Till now, Zuari does not have any representation on the MCF board.
“Getting majority control in MCF does not mean that my agreement with Mallya has ceased to exist. I will work with him as we are partners in this joint venture,” said Poddar.
On his future plans for MCF, he said, ”Let us get in… we are not on board yet.”
In a surprise move, Mallya had last year resigned as director of MCF, which was considered one of the last crown jewels of the liquor baron. Later, his step mother, Ritu Mallya, joined the board. Zuari had 16.47% stake in MCF as on March 31, 2015, while the promoter UB group has 21.97% stake.
Sailesh Mehta’s Deepak Fertilisers, a key rival, which earlier had about 31% stake in MCF, started to offload its stake through bulk deals on the stock exchanges from December last year as part of its strategy to exit from the Mallya-led UB Group firm. Deepak Fertilisers’ shareholding in Mangalore Chemicals has now come down to 6.43%.