NEW DELHI, Apr 19: The board of Mangalore Chemicals and Fertilisers Ltd (MCFL) has termed Zuari’s open offer to buy an additional 36.5 per cent stake in the company as “fair and reasonable”, saying the price offered is higher than the current level.
In December, Kolkata-based industrialist Saroj Poddar-led Zuari group had announced the open offer to buy up to 36.56 per cent stake in MCFL for Rs 398.2 crore. It will start on April 21.
“The open offer is complied with Sebi norms and the price offered is higher than prevailing market price of MCFL shares. Therefore, the offer is fair and reasonable. (It’s) now for shareholders to evaluate and decide,” MCFL’s Independent Directors Committee (IDC) Chairman Pratap Narayan told PTI.
The price offered by Zuari in its offer is Rs 91.92 apiece whereas the MCFL shares closed at Rs 84.45 in the last trading session.
Meanwhile, backing out of the race for takeover of MCFL, Deepak Fertilisers has sold its 18.45 per cent stake for nearly Rs 192 crore over two days in the past week.
The Zuari group has been competing with Pune-based Deepak Fertilisers for taking control of MCFL since July 2013.
With the sale of shares, Deepak Fertilisers has reduced its stake to 10.60 per cent, from 29.05 per cent as of December 2014. The stake of Zuari in MCFL as of December 2014 is 16.47 per cent.
MCFL is strategically located near Mangalore port and has a urea plant with annual capacity to produce about 4 lakh tonnes of urea and about 3 lakh tonnes of phosphatic fertilisers. (PTI)
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