Zuari-UB, Deepak Fertilisers to launch MCFL open offers on Oct1

Last date for upward revision the size of the offer or price is Sept 25

Intensifying the battle for acquisition of Vijay Mallya's fertiliser firm MCFL, Zuari-UB group combine and Deepak Fertilisers will on October 1 launch competing open offers to buy additional 26% stake in the company.

Earlier this month, fair trade watchdog CCI had cleared Zuari's proposal to buy additional 26% stake in the Mangalore Chemicals and Fertilisers Ltd (MCFL).

Deepak Fertilisers And Petrochemicals Corporation Limited, which is also in the fray to up stake in MCFL, last month received nod from the Competition Commission of India (CCI) for its Rs 190-crore open offer.

In a separate filings to the BSE, Deepak Fertilisers and Zuari group announced the revised schedule for their open offers.

Accordingly, the open offer will start on October 1 and close on October 17. The last date for upward revision the size of the offer or price is September 25.

In a takeover bid, Deepak Fertilisers on April 23 raised its stake in the MCFL to 25.31% (from 24.46%) and announced an open offer to buy another 26% stake at Rs 63 per share for about Rs 194 crore.

Later, the Zuari and UB group joined hands to make a combined open offer for buying 26% stake in MCFL at Rs 68.55 per share -- aggregating to Rs 211.22 crore.

At present, Zuari group has 16.43% stake in MCFL while Deepak has 25.31% stake. The promoter UB group has 21.97% stake.

The battle for MCFL between Deepak Fertilisers and Zuari Group was triggered in April 2013 when the latter bought about 10% stake in MCFL through open market.

Later, Deepak Fertilisers acquired 24.46% stake in MCFL in July 2013. Zuari group increased its stake to 16.43% in the same month.

In April 2014, Deepak Fertilisers further hiked its shareholding in MCFL to 25.31% -- thereby triggering the mandatory open offer clause under Sebi norms.