Zuari Group is in discussions with investment bankers to launch its open offer in the next 12 days to acquire an additional 36.56% stake in Mangalore Chemicals and Fertilizers Ltd for Rs.398.2 crore.
The fair trade watchdog, Competition Commission of India (CCI), had on Tuesday approved Zuari’s open offer.
In December last year, Kolkata-based industrialist Saroj Poddar-led Zuari Group, which is locked in a take-over battle with Pune-based Deepak Fertilisers, had launched the open offer for acquiring 25.9% stake in MCFL.
The open offer was later revised to 36.56% stake.
Deals involving substantial acquisition of shares in companies needs CCI’s approval.
“At the moment, we are in discussions with investment bankers to finalise the date of open offer. As per the norms we have to launch the open offer within 12 days of CCI approval,” Zuari Global Managing Director Suresh Krishnan said.
The company had written to Securities and Exchange Board of India (Sebi) for extension of the tendering period, as it had not received CCI’s approval.
“The tendering period for the open offer may commence not later than 12 working days from the receipt of CCI approval, and the payment to all successful public shareholders who tender their equity shares in the open offer..” the company had said, quoting Sebi’s letter, on March 12.
A two-way battle is going on between Zuari Group and Deepak Fertilisers for the take-over of MCFL.
At the end of December 2014, Zuari Fertilisers & Chemicals Ltd—which is part of promoter group—held 16.47% stake in MCFL while that of Deepak Fertilizers stood at 29.05%. Vijay Mallya-led UB Group has over 21% stake in MCFL.