Zuari to buy 36.56% in Mangalore Chemicals and Fertilisers for Rs398 crore

Zuari group today announced plans to buy an additional 10 per cent stake in Mangalore Chemicals and Fertilisers Ltd (MCFL) against the earlier plan to acquire 26 per cent in the company.

Saroj Poddar-led Zuari group has been competing with Pune-based Deepak Fertilisers for taking control of the Mangalore Chemicals and Fertilisers Ltd (MCFL), since July last year, would spend Rs398.2 crore to buy up to 36.56 per cent stake in MCFL.

The Zuari group had, earlier this month, announced a voluntary open offer to acquire 25.9 per cent stake in MCFL, for Rs282.19 crore. (See: CCI clears Zuari's proposal to acquire 26% stake in Mangalore Chemicals and Fertilisers)

In a filing to the BSE, Zuari group today revised the open offer size to 4,33,29,000 equity shares representing 36.56 per cent of the share capital.

However, Zuari has retained the price of open offer at Rs 91.92 per share. MCFL shares today closed at Rs89.90 apiece.

The battle for MCFL between Deepak Fertilisers and Zuari Group was triggered in July 2013 when the latter bought about 10 per cent stake in MCFL from the open market.

Later, Deepak Fertilisers acquired 24.46 per cent stake in MCFL in July 2013. Subsequently, the Zuari group increased its stake to 16.43 per cent.

Deepak Fertilisers further raised its 25.31 per cent stake in MCFL in April 2014, triggering another mandatory open offer by Zuari.

At present, UB group has 21.97 per cent stake in MCFL, while Zuari group and Deepak Fertilisers have 16.47 per cent and 31.25 per cent stakes respectively.