Vijay Mallya steps down as chairman of Mangalore Chemicals & Fertilizers

Vijay Mallya, a promoter director and chairman of Mangalore Chemicals & Fertilizers Ltd, has stepped down from its board, the company said in a stock market disclosure. It did not give any reason for his resignation.

Mallya's resignation comes after the completion of the competing open offers to the shareholders of the firm, in which hostile bidder Deepak Fertilisers managed to up its holding to consolidate its holding as the single-largest shareholder of the company.

Currently, Deepak Fertilisers owns 32 per cent in Mangalore Chemicals, UB Group owns a 22 per cent equity stake and Saroj Poddar's Adventz group holds 16.43 per cent stake.

Earlier in May, Deepak Fertilisers hiked the offer price in its unsolicited open offer, increasing its price for an additional 26 per cent equity stake in Mangalore Chemicals to Rs 63 per share from its previous offer of Rs 61.75 per share.

Following this liquor baron Vijay Mallya joined hands with Saroj Poddar’s Adventz and together the two launched a rival joint open offer for Rs 68.55 per share.

As per the pact between UB group and Zuari Industries had signed earlier, Mallya would have been remained chairman on the board of Mangalore Chemicals if they jointly succeed to acquire controlling stake via an open offer.

However, this was tweaked recently after United Bank of India declared Mallya as a wilful defaulter on account of non-payment of dues.

In September, Deepak Fertilisers upped its offer price to Rs 93 per share from its previous offer price of Rs 63 per share. This allowed it to garner additional 6 per cent stake taking its ownership to 32 per cent.

Meanwhile, following Mallya's resignation, Mangalore Chemicals share price rose about 9.4 per cent to end the day at Rs 89.25 each on BSE in a weak Mumbai market on Monday.

(Edited by Joby Puthuparampil Johnson)

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