MCF tanks as Mallya acquires control

Mangalore Chemicals and Fertilizers (MCF) is down in the red today; slipping down over 4% at Rs.91 levels, form yesterday’s close of around Rs.96.

The market is obviously not happy with the news that in the tug of war between Deepak Fertilisers and Saroj Poddar’s Zuari Agro, the company now goes back to the combined force of Vijay Mallya and Poddar. Deepak Fert, whose offer closed yesterday, as against a bid for 30.8 million shares, received only 6 million shares. Its bid for a 26% stake came to naught when the stock price suddenly spiked up over the final revised offer price at Rs.93.60.  Following the 47% upward revision of offer price by Deepak Fertilisers, Saroj Poddar’s Adventz and UB Group also hiked their offer from Rs 68.55 a share to Rs 81.6 a share.

As per the pact between UB group and Zuari Industries signed earlier, Mallya would remain chairman on the board of MCF if they jointly succeed to acquire controlling stake via an open offer. The pact also allows Mallya to appoint three directors on its board.