Deepak Fertilisers and Petrochemicals Corporation Ltd, through its wholly owned subsidiary SCM Soilfert Ltd, has acquired 24.5 per cent stake in UB Group’s Mangalore Chemicals and Fertilizers Ltd, as per a stock market disclosure. The stake was purchased through bulk deals on BSE on Wednesday from a bunch of investors, including a few institutional investors for around Rs 179 crore ($29.7 million).
With the move Deepak Fertilisers becomes the single-largest shareholder of public-listed Mangalore Chemicals. However, its management has said it is not looking at buying a controlling stake and UB Group will continue to manage Mangalore Chemicals.
UB Group held 22 per cent stake, half of which was pledged with financial institutions, as of March 31, 2013.
Since the stake purchase is less than the trigger point of 25 per cent, there would not any open offer. Mangalore Chemicals’ scrip, which has almost doubled in the last three months, was down 6.6 per cent in mid-day trades on the BSE on a strong Mumbai market on Thursday.
In April this year, Zuari Fertilisers and Chemicals acquired 10 per cent in Mangalore Chemicals from State Bank of India and a few other investors.
Founded in 1976, Bangalore-based Mangalore Chemicals manufacturers chemical fertilisers. Its manufacturing facility is located at Panambur, Mangalore (Karnataka).
Pune-based Deepak Fertilisers is into industrial and agriculture chemicals and agri products. It manufactures methanol, nitric acid, isopropyl alcohol, carbon dioxide and hydrogen. Its agribusiness segment provides nutrients and fertilisers. It also offers specialty retailing services under the brand name Ishanya.
In 2011, the firm bought 49 per cent with management control in agri products firm Desai Fruits & Vegetables, the country’s largest exporter of bananas, for Rs 60.77 crore.
Deepak Fertilisers shares were trading at Rs 95.65, up 1.76 per cent in a strong Mumbai market on Thursday.
In another deal in the fertiliser space, Coromandel International recently acquired majority stake in Liberty Phosphates.
(Edited by Joby Puthuparampil Johnson)
Leave Your Comment
4 years ago
Deepak Fertilisers and Petrochemicals Corp. Ltd (DFP), along with its subsidiary...
4 years ago
Saroj Poddar-controlled Zuari Fertilisers and Chemicals has joined hands with...
3 years ago
In a surprising move amid a takeover battle for UB Group firm Mangalore...