Zuari group has purchased more than 42,000 shares in the Vijay Mallya led UB group’s MCFL through its recently concluded open offer, raising its stake marginally to 16.47 per cent.
The takeover battle for Mangalore Chemicals and Fertilizers Ltd (MCFL), which is going on for quite sometime had further intensified in September after Deepak Fertilisers raised its open offer price to Rs 93.60 per share.
Soon after, rival Zuari group in association with MCFL’S original promoters UB group, had revised their open offer price to Rs 81.60 per share.
In a filing to the BSE, MCFL on Wednesday informed that Zuari Group has purchased 42,424 shares equivalent to 0.04 per cent stake in the company.
Meanwhile, Deepak Fertilisers also raised its stake by about 6 per cent through its own open offer to about 32 per cent. Both open offers started on October 1 and closed on October 20.
The battle for MCFL between Deepak Fertilisers and Zuari Group was triggered in April 2013 when the latter bought about 10 per cent stake in MCFL through open market.
Later, Deepak Fertilisers acquired 24.46 per cent stake in MCFL in one-go in July 2013. After this, Zuari group had increased its stake to 16.43 per cent in the same month.
At present, Deepak Fertiliser holds about 32 per cent stake in Mangalore Chemicals and Fertilizers Ltd (MCFL), whereas consortium of Zuari group companies have 16.47 per cent stake and Vijay Mallaya’s UB group 21.97 per cent stake.
The Zuari group along with Vijay Mallya’s UB group needs about 12 per cent additional stake in MCFL to take control of the company while at the same time Deepak Fertilisers would require another about 25 per cent stake in the MCFL.
Zuari Agro Chemicals had also entered into an agreement this year to use Mangalore Chemicals’s facilities for contract production.