In his first reaction to the development over United Bank of India’s (UBI) declaration of UB Group Chairman Vijay Mallya as an ‘willful defaulter”, Saroj Poddar, Chairman of Adventz Group said on Thursday that if the tag legally stuck, the agreement between the two groups for a joint control over Mangalore Chemical & Fertilisers (MCF) would require some modification.

After the AGM of Texmaco Rail & Engineering Ltd, an Adventz group outfit, Poddar said that he did not know what Mallya was going to do towards the legally challengeable tag, but if it is upheld by the court of law, then the agreement would need an amendment regarding the Chairmanship of Mallya for five years and two other MCF board berths representing UB Group’s interest.

“The agreement for joint control of MCF and the Advntz Group’s proposed open offer and UB Group’s support for it, however, remains intact”, Poddar observed.

Poddar said large part of the UB Group’s holding in MCF was unencumbered and were not pledged with any bank. “A marginal part may only be pledged with a private bank,” he added.

Both the groups planned the agreement and the open offer to counter another proposed offer from the Deepak Fertilisers & Petrochemicals Corporation Ltd group, which had 25.31 per cent stake in MCF.

UB Group’s current is holding is 21.97 per cent and the Adventz group’s holding stands at 16.43 pre cent.

He expected that the Competition Commission would clear the open Adventz Group open offer through Zuari Fertilisers and Chemicals Ltd shortly.

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