Two MCFL investors tender 2.6% stake to Deepak Fertilisers

The takeover battle further intensified last month after Deepak Fertilisers raised its open offer price to Rs 93.60 per share

Amid a prolonged takeover battle for MCFL, the fertiliser firm's two investors, including Morgan Stanley, have tendered shares to the tune of 2.6% stake in the company to Deepak Fertilisers.

The takeover battle for Mangalore Chemicals and Fertilizers Ltd (MCFL), which is going on for quite sometime further intensified last month after Deepak Fertilisers raised its open offer price to Rs 93.60 per share.

Hours after that, rival Zuari group in association with MCFL'S original promoters UB group, revised their open offer price to Rs 81.60 per share.

Today, October 20, is the last day for open offers of both the companies.

Karnataka State Co-operative Marketing Federation, which is the third largest non-promoter shareholder after Deepak and Zuari with 27,06,834 shares equivalent to 2.28% stake in the company, has decided to tender its shares to Deepak Fertilisers, according to sources.

Another institution Morgan Stanley which currently holds about 4.50 lakh shares in the company has also decided to tender their shares to Deepak Fertilisers, sources added.

Aditya Birla Money Head - Equity Research - Vivek Mahajan said, "MCFL takeover battle has reached the final leg. The offer price is unlikely to be revised as per SEBI formula. The offer of Zuari Agro along with Vijay Malya is at Rs 81.6...."

"Deepak Fertilisers (DFPCL's) offer of Rs 93.6 is stretched valuations and there is no possibility of revision in the price as per SEBI regulations, investors are likely to lap up this one time opportunity to exit the stock," Mahajan added.