Zuari to Launch Open Offer on April 20 for Raising Stake in MCFL

New Delhi: Taking forward the takeover battle for Vijay Mallya-led UB Group's fertiliser firm MCFL, Zuari Group will launch an open offer on April 20 to acquire additional 36.56 per cent stake in the company, for which it is competing with rival Deepak Fertilisers.

The open offer is being launched after an approval from fair trade watchdog Competition Commission for acquiring up to 36.56 per cent stake in Mangalore Chemicals and Fertilisers Ltd (MCFL) for Rs 398.2 crore.

Zuari, led by Kolkata-based industrialist Saroj Poddar, had announced a voluntary open offer in December last year as well for acquiring 25.9 per cent stake in MCFL. 

The firm has now increased the offer size to acquire up to 36.56 per cent stake.

In a regulatory filing today, Zuari group firm Zuari Agro Chemicals said the open offer will begin on April 20 and close on May 26.

The two-way battle is going on between Zuari Group and Pune-based Deepak Fertilisers for a long time for taking over MCFL.

At the end of December 2014, Zuari held 16.47 per cent stake in MCFL while Deepak Fertilisers had 29.05 per cent. 

Crisis-hit UB Group, which had earlier supported Zuari offer, owns 21 per cent stake in MCFL.