Saroj Kumar Poddar-controlled Adventz Group firm Zuari Fertilisers and Chemicals Ltd (ZFCL), a wholly-owned subsidiary of Zuari Agro Chemicals Ltd (ZACL), has acquired an additional 36.56 per cent stake in UB Group firm Mangalore Chemicals and Fertilizers Ltd (MCFL), in its revised open offer to buy majority stake in the firm.
Although the fate of the takeover battle for MCFL was sealed few weeks ago with Deepak Fertilisers selling almost all its stake in the firm, the successful open offer marked the formal change in control of the firm under Zuari.
Zuari is estimated to have shelled out around Rs 398 crore ($62 million) for hiking its stake. It earlier held 16.47 per cent stake and now controls 53.03 per cent stake in MCFL.
The open offer was made at Rs 91.92 a share, a major premium to the company’s market price of around Rs 60-65 s share over the last few days.
Zuari had come in as a white knight for UB Group as Deepak Fertilisers and Petrochemicals mounted a hostile takeover bid in July 2013. Deepak Fertilisers did manage to garner a large chunk of shares and became the single largest shareholder with its last competing open offer late last year.
However, it gave up on the fight and started selling its stake in the firm few weeks ago.
Currently, UB Group, as a co-promoter, owns 22 per cent equity stake in the firm.