NEW DELHI : As the battle for control of Mangalore Chemicals & Fertilizers Ltd (MCFL) hots up, Deepak Fertilisers Chairman Sailesh Mehta hinted he was open to discussions with the rival alliance of Vijay Mallya and Saroj Poddar of the Zuari Group. Mehta’s comments come two days after Mallya’s UB Group joined hands with the Zuari group to ward off a hostile takeover bid by Deepak Fertilisers for MCFL. The duo proposed to buy an additional 26 % stake in MCFL at rates 9 % higher than what Deepak Fertilisers offered.
“..Mr Saroj Poddar and Dr Mallya are all respected persons…and there is always somewhere room for discussions to look at how MCFL unit and its growth is not compromised at any moment,” Mehta said after a company board meeting. Asked about financing the takeover bid, Mehta said funding is not an problem and Deepak Fertilisers’ balance sheet is very strong. UB and Zuari, two key shareholders in MCFL, came together this week, marking the next stage of a bitter battle between the Zuari group and Deepak Fertilisers to wrest control of the UB Group company, which has been on for over a year.
Deepak Fert moves HC on gas supply stoppage order
Deepak Fertilisers & Petrochemicals Corp Ltd has approached the Delhi High Court against an order of the petroleum ministry to stop domestic gas supply to the company’s Taloja unit in Raigad. The high court will hear the case on Friday. The ministry has ordered stoppage of domestic gas to phosphatic and potassic plants of companies such as Deepak Fertilizer Ltd which sell the products at market rates. The company has sought an urgent stay on the order. The order was aimed at restricting the supply of cheaper domestic gas to urea manufacturing units only. Urea is sold at government-regulated prices. The gain made in manufacture of phosphatic and potassic plants fertiliser using cheaper gas was to be recovered from these units.