BackSebi asks Zuari to launch open offer for stake in MCFL within 12 days of CCI nod
Zuari has requested for extension of tendering period to launch open offer for acquiring 36.56% stake in Mangalore Chemicals
Premium(Zuari group had launched the open offer in December last year, which it later revised to `398.2 crore to buy up to 36.56% stake in MCFL, about 10% more stake than its earlier offer.)
New Delhi: With Competition Commission of India (CCI) approval yet to come for Zuari’s voluntary open offer for acquiring 36.56% stake in rival Mangalore Chemicals and Fertilizers Ltd (MCFL), markets regulator Securities and Exchange Board of India (Sebi) has allowed tendering of shares to be launched within 12 days of the clearance from the fair trade regulator.
Kolkata based industrialist Saroj Poddar-led Zuari group had launched the open offer in December last year, which it later revised to 398.2 crore to buy up to 36.56% stake in MCFL, about 10% more stake than its earlier offer. Following this, the company has written to the Sebi for extension of the tendering period as it has still not received the approval from the CCI.
“The tendering period for the open offer may commence not later than 12 working days from the receipt of CCI approval, and the payment to all successful Public Shareholders who tender their Equity Shares in the open offer.." the company said in a BSE filing quoting Sebi’s letter.
Sebi has responded to the company’s letter on 10 March seeking extension of tendering period. “The open offer will be launched subsequent to the approval from CCI," a top company official told PTI.
Meanwhile, the two way battle is going on between Zuari group and Pune based Deepak Fertilisers for takeover of MCFL. Zuari group and Deepak Fertilizers are in the race to take control of MCFL.
Recently, Zuari announced voluntary open offer to acquire additional 36.56% stake in MCFL. At the end of December 2014, Zuari Fertilisers & Chemicals Ltd—which is part of promoter group—held 16.47% stake in MCFL while that of Deepak Fertilizers stood at 29.05%.
Vijay Mallya-led UB group has over 21% stake in MCFL. Meanwhile, CCI has also fined both Zuari and Deepak Fertilizers for violating competition norms, with the penalty of 3 crore and 2 crore, respectively.
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