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Zuari, UB Group to launch counter open offer for Mangalore Chemicals

LiveMint logoLiveMint 13-05-2014 P.R. Sanjai

Mumbai: Saroj Poddar-led Zuari Fertilisers and Chemicals Ltd on Tuesday said it will launch a counter open offer for acquiring controlling stake in Mangalore Chemicals and Fertilizers Ltd along with United Breweries (Holdings) Ltd and its associate companies Kingfisher Finvest India Ltd and McDowell Holdings Ltd.

Zuari Fertilisers-led consortium has agreed to buy UB Group-promoted Mangalore Chemicals shares at `68.55 per equity share, nearly 9% up from what was offered by rival Deepak Fertilisers and Petrochemicals Corp. Ltd.

On 2 May, Deepak Fertilisers raised its price for a 26% stake in Mangalore Chemicals after signalling the start of a takeover battle for the company run by liquor baron Vijay Mallya’s UB Group with its open offer to shareholders on 23 April.

The Pune-based Deepak Fertilisers raised the offer from `61.75 to `63 per share for stock in the Mangalore Chemicals.

Mallya, whose UB Group holds a 22% stake in Mangalore Chemicals, could lose management control if Deepak Fertilisers’s offer is fully subscribed to by minority shareholders. Half of the stake is mortgaged with lenders.

Poddar, whose Adventz Group produces farm inputs, owns 16.43% in Mangalore Chemicals.

Since Deepak Fertilisers announced its unexpected and unsolicited bid, Poddar has been trying to strike a deal with Mallya for the 22% stake held by his UB Group.

Ambit Corporate Finance Pvt. Ltd and ICICI Securities Ltd are running the open offer for Zuari and UB Group.

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