Deepak Fertilisers and Petrochemicals Corp. Ltd (DFP), along with its subsidiary SCM Soilfert Ltd, has marginally increased the unsolicited open offer price to acquire additional 26 per cent equity stake in Mangalore Chemicals and Fertilizers Ltd from the public shareholders of the company, according to a stock market disclosure.
The firm has increased the open offer price to Rs 63 a share from Rs 61.75 a share. It had recently bought additional stake in the company at Rs 63 per share and that automatically mandates a revised price.
At the same time, UB Group, which is the promoter of Mangalore Chemicals, is reportedly looking to team up with Saroj Poddar’s Adventz Group to fight out the takeover bid by DFP.
Pune-based DFP had raised its holding through a market transaction a few days ago which pushed up its ownership in Mangalore Chemicals from 24.46 per cent to 26.1 per cent.
DFP is looking to acquire up to 30.8 million equity shares representing 26 per cent stake of Mangalore Chemicals at an offer price of Rs 63 per share, which will value the transaction at around Rs 194 crore ($32 million), if fully subscribed.
DFP had last July bought 24.46 per cent stake in Mangalore Chemicals for around Rs 180 crore via open market through its subsidiary SCM Soilfert.
This came after Saroj Poddar-led Adventz Group firm Zuari Fertilisers and Chemicals Ltd came into pick a minority stake in Vijay Mallya-promoted Mangalore Chemicals. Poddar was seen as a white knight to protect Mallya’s hold over the company given that much of promoter holding was pledged with institutions.
However, DFP had said, back then, that it is not looking at a controlling stake in Mangalore Chemicals.
Media reports had previously said that Zuari Fertilisers is looking to exit the company. Zuari Fertilisers and Chemicals Ltd owns around 16.43 per cent stake in Mangalore Chemicals.
But Zuari's latest stance on its investment is not clear. Adventz Group had previously sealed a similar takeover battle when its group firm Texmaco acquired control of Kalindee Rail.
In the quarter ended December 31, 2013, Mangalore Chemicals reported almost a five-fold rise in net profit to Rs 27.96 crore, with revenues rising 21 per cent to Rs 840.5 crore over the same period in the previous financial year.
(Edited by Joby Puthuparampil Johnson)