MCF open offer bids await CCI nod

Zuari's open offer has been approved by Sebi

Deepak Fertilisers' open offer for Mangalore Chemicals and Fertilisers (MCF) has got approval from Securities and Exchange Board of India, but is awaiting Competition Commission of India's (CCI's) nod. Zuari's Saroj Poddar-led joint open offer along with MCF promoter Vijay Mallya is also awaiting CCI nod for the same.

Sebi (Securities and Exchange Board of India) has approved open offer by Zuari, as well. Business Standard had reported first that the market regulator had given its nod to Poddar's offer. Sebi had sought clarifications from the two bidders who had made offers for an additional stake in MCF. The two suitors in contention are Deepak Fertilisers and Zuari Fertilisers and Chemicals Ltd. Zuari and Mallya, existing promoter of MCF, are "persons acting in concert".

A notice by the Pune-based company today said on pending CCI approval, "In order to address the above issues, a meeting was held with the representatives of JM Financial, lClCl Securities Ltd and Ambit-Corporate Financial Pvt Ltd on July 21, 2014, wherein it was proposed that the following methodology may be adopted: a) the tendering period for the open offer may commence not later than twelve working days from the receipt of CCI approvals, whichever is received later (ie, of the CCI approvals granted to the two acquirers, whichever is late.)."

According to sources, CCI approval for the open offer is in advanced stages of evaluation and the final nod could arrive soon which would lead to commencement of open offer for MCF.

Poddar, in May, launched his Rs 211-crore counter bid for the company at Rs 68.55 a share to take on Deepak Fertilisers' earlier offer of Rs 63 a share. Mallya's UB group, which owns a 21.98 per cent stake in MCF, is also supporting Poddar's bid to buy another 26 per cent. Market sources said, Mehta could find it difficult to beat the combine, if it does not go for a revision in its exiting open offer price.

It remains to be seen if the Pune based company would choose to revise the open offer to add a new twist to the long drawn MCF saga.