Saroj Poddar-led Zuari Group’s latest move to buy an additional 36.56 per cent stake in Mangalore Chemicals and Fertilizers (MCF), up from the previously planned 25.9 per cent, adds a new twist to the prolonged takeover tussle for the fertiliser company.

With public holding a little over 30 per cent in the Mangalore-based company, Zuari’s bid to buy the planned 4.03 crore shares will need either Vijay Mallya or the rival suitor — Pune-based Deepak Fertilizers — to tender some of their own holdings.

These two entities own around 22 per cent and 32 per cent stakes, respectively, while Zuari Group holds 16 per cent in MCF.

Intriguing developments

Also, Deepak will have to make a counter-offer on Friday if it wants to stay in the fray as a contender — January 2 happens to be the last day for making a competing offer to Zuari’s mid-December bid of ₹91.92 per share. Interestingly, Deepak’s own earlier offer price stood higher at nearly ₹95 per share.

Arun Kejriwal, founder of advisory firm Kejriwal Research and Investment Services, says the latest developments are intriguing. “This is suggestive of a deal negotiated between Saroj Poddar and Vijay Mallya.”

Takeover tussle

MCF, with a plant located near a port, adequate land bank, little debt on books and having been converted from naphtha to gas, has been at a centre of a takeover tussle for some time now.

For Deepak, it will bring the southern market into its fold, while for Zuari, it will provide additional muscle to its existing market.

MCF’s stock that had hit a 52-week high of ₹104 in October at the height of the acquisition drama, closed at ₹89.95 on Thursday, down 0.22 per cent from the previous close.

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