BackZuari says offer to buy over 36% stake in MCFL oversubscribed
The group will complete the process of acquiring about 4.33 crore shares from MCFL's shareholders during this week, raising its stake to 53.03%
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New Delhi: Zuari group is set to have a majority stake of over 53% in Mangalore Chemicals and Fertilisers Ltd (MCFL) as its open offer to buy 36.56% share in the Vijay Mallya-led UB group firm for nearly ₹ 400 crore has been successful.
Zuari group’s open offer to acquire an additional 36.56% stake in MCFL started on 20 April. It currently has 16.47% stake in the fertiliser firm. The group will complete the process of acquiring about 4.33 crore shares from MCFL’s shareholders during this week, raising its stake to 53.03%.
“Our open offer has been oversubscribed and I am planning to meet Vijay Mallya by the end of this month. I along with Mr Mallya, will work towards making MCFL one of the premier fertiliser companies in the country," Zuari Group chief Saroj Poddar told PTI.
Zuari was competing with Deepak Fertilisers for taking control of MCFL since July 2013, but latter withdrew from the race and has been selling shares of MCFL through open market. “Against our offer to acquire 4.33 crore shares of MCFL, as many as 5.2 crore shares have been tendered. But we can acquire only the shares offered in the open offer," Zuari global managing director Suresh Krishnan said.
These shares would be transferred in favour of Zuari group companies during this week, Krishnan added. After the transfer of these shares, Zuari group would have 53.03% stake in MCFL. UB group, the original promoter, has 21.97% stake.
As per the shareholding pattern on BSE, both Zuari group and UB group are in the list of promoters. Together, they will have 75% stake in MCFL.
Zuari group had announced the open offer in December 2014 to buy 4,33,29,000 shares in MCFL at ₹ 91.92 per share. Meanwhile, Pune-based Deepak Fertilisers has reduced its stake in the MCFL to 6.43% from 31.25% since December last year.
MCFL has a urea plant near Mangalore port with annual capacity to produce about 4 lakh tonnes of urea and about 3 lakh tonnes of phosphatic fertilisers. Zuari group has fertiliser plant in Goa.
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