Shares of UB group firm Mangalore Chemicals and Fertilisers (MCF) rallied as much as 14% in Friday’s trade after Kolkata-based Saroj Poddar-led Zuari group made yet another open offer to increase its stake in MCF . Shares ended the session at R90.85, up R4.70 or 5.5% while the benchmark Sensex closed down 104.72 points or 0.4% at 28458.10.
In a late evening filing with the bourses on Thursday, Zuari Fertilisers and Chemicals stated that it was announcing an open offer for additional 3.07 crore shares or 25.90% stake in MCF,, at an offer price of R91.92 per share. It is making this offer in concert with Zuari Agro Chemicals.
The price announced for the open offer represents a 6.7% premium to the closing price of MCF shares on Thursday and pins the total value of the offer at R282.19 crore.
While the offer is not conditional upon any minimum level of acceptance, it is expected to re-ignite the bidding war for the control of MCF between Zuari group and Deepak Fertilisers that was first triggered in April last year with the latter obtaining a 10% stake in MCF through open market.
The Zuari group had sided with Vijay Mallya-led UB group for increasing its stake in MCF. Last month, competing open offers by Deepak Fertilisers and Mallya-UB combined concluded with Mallaya and Poddar gaining 38% stake in MCF while Deepak Fertilisers acquiring 32% ownership.
Interestingly, the current open offer launched by the Zuari group on Thursday didn’t mention any of the UB Group companies or promoters as persons acting in concert, unlike the last open offer.
On Thursday, MCF announced the appointment of Vijay Mallya’s step-mother Ritu Mallya as a director of the firm with immediate effect. On December 1, Vijay Mallya, who has been classified as a wilful defaulter by the likes of UCO Bank and United Bank of India, stepped down as chairman, sparking a 10% rally in the stock.