Mallya, Pod­dar Join Hands, Make Counter Of­fer for MCF

The Economic Times - - Front Page - OUR BU­REAUS

The bat­tle to ac­quire con­trol­ling stake in Man­ga­lore Chem­i­cals & Fer­til­iz­ers (MCF) in­ten­si­fied on Tues­day with Saroj Pod­dar-con­trolled Ad­ventz Group join­ing hands with Vi­jay Mallya-owned UB group to make a counter of­fer at a higher price than that of­fered by Deepak Fer­tilis­ers. Ad­ventz and UB made a com­bined of­fer to buy 26% stake in MCF at .` 68.55 per share. While Ad­ventz group com­pany Zuari Fer­tilis­ers & Chem­i­cals holds 16.43% stake in Man­ga­lore Chem­i­cals, pro­moter United Brew­eries (UB) group has 21.98%. “With the Ad­ventz and UB group en­ter­ing into an agree­ment late Mon­day evening to join hands, the com­bined stake of both com­pa­nies be­came more than the re­quired 25% stake to make an open of­fer. The duo’s com­bined hold­ing of 38.41% plus man­age­ment con­trol (with UB) clearly gives Ad­ventz and UB group an edge over Deepak Fer­tilis­ers,” said an­a­lysts closely track­ing the com­pany. The com­bined of­fer fol­lows Deepak Fer­tilis­ers’ open of­fer an­nounce­ment last month to buy 26% stake at .` 61.75 per share. The com­pany sub­se­quently re­vised the of­fer price to .` 63 per share, the high­est price at which it had ac­quired shares from the open mar­ket to raise its stake to 25.31% from 24.46%. Deepak Fer­tilis­ers is likely to come out with a strat­egy to counter the of­fer in the com­ing days. “The of­fer has just been an­nounced, we shall take nec­es­sary steps af­ter con­sult­ing our in­vest­ment bankers,” said a spokesper­son for Deepak Fer­tilis­ers.

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