Mangalore Chem Up Over 9% As Mallya Quits Board

Mangalore Chem Up Over 9% As Mallya Quits Board

FPJ BureauUpdated: Saturday, June 01, 2019, 06:12 AM IST
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Mumbai : Vijay Mallya resigned from the board of Mangalore Chemicals & Fertilizers Ltd, the company said in a notice to the exchanges, after a long drawn out battle between Zuari Agro Chemicals Ltd and Deepak Fertilisers and Petrochemicals Corp Ltd for control of the company fizzled out into an anti- climax with no clear winner emerging.

The news saw Deepak Fertiliser shares rising 3% and Mangalore Chemical shares rising around 16%.

After surging 19.97 per cent to Rs 97.90 in intra-day session, shares of MCFL finally ended at Rs 89.25, up 9.38 per cent from previous close on the BSE.

Deepak Fertilisers’ battle for control of Mangalore Chemicals began in July 2013 with its arm SCM Soilfert buying a 24.46% stake in the company promoted by the Vijay Mallya-led UB Group. Deepak Fertilisers was looking to take control of Mangalore Chemicals so as to give it a well-oiled distribution network and a significant presence in the lucrative southern market.

After the July 2013 deal, Saroj Poddar, liquor baron Mallya’s friend, came in as a white knight. Zuari Fertilisers Ltd, subsidiary of the Poddar-led Zuari Agro Chemicals Ltd, bought a 16% stake in Mangalore Chemicals.

On Nov 7, Deepak Fertilizers and Petrochemicals Corp Ltd said that it had acquired 5.94% stake in Mangalore Chemicals and Fertilizers Ltd through its open offer. Deepak Fertilisers now owns 31.25% stake in the company. Subsequently, Zuari Agro along with McDowell Holdings Ltd, Kingfisher Finvest India Ltd, Zuari Fertilisers and Chemicals Ltd, and United Breweries (Holdings)

Ltd managed to pick up a measly 42,424 shares or 0.04% stake in the company, taking total stake of these companies in Mangalore Chem to 38.44%.   –Cogencis

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