Sebi asks Zuari to launch open offer within 12 days of CCI nod

With CCI approval yet to come for Zuari's voluntary open offer for acquiring 36.56 per cent stake in rival MCFL, markets regulator Sebi has allowed tendering of shares to be launched within 12 days of the clearance from the fair trade regulator.
Kolkata based industrialist Saroj Poddar-led Zuari group had launched the open offer in December last year, which it later revised to Rs 398.2 crore to buy up to 36.56 per cent stake in Mangalore Chemicals and Fertilizers Ltd (MCFL), about 10 per cent more stake than its earlier offer.
Following this, the company has written to the Securities and Exchange Board of India (Sebi) for extension of the tendering period as it has still not received the approval from the Competition Commission of India (CCI).

"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 said in a BSE filing quoting SEBI's letter.
Sebi has responded to the company's letter on March 10 seeking extension of tendering period.
"The open offer will be launched subsequent to the approval from CCI," a top company official told PTI.

Meanwhile, the two way battle is going on between Zuari group and Pune based Deepak Fertilisers for takeover of MCFL.

Zuari group and Deepak Fertilizers are in the race to take control of MCFL. Recently, Zuari announced voluntary open offer to acquire additional 36.56 per cent stake in MCFL.
At the end of December 2014, Zuari Fertilisers & Chemicals Ltd -- which is part of promoter group -- held 16.47 per cent stake in MCFL while that of Deepak Fertilizers stood at 29.05 per cent. Vijay Mallya-led UB group has over 21 per cent stake in MCFL.
Meanwhile, CCI has also fined both Zuari and Deepak Fertilizers for violating competition norms, with the penalty of Rs 3 crore and Rs 2 crore respectively.