Adventz Group chairman Saroj Poddar said on Saturday he and UB Group chairman Vijay Mallya are ‘working jointly’ to evolve a strategy for Mangalore Chemicals & Fertilizers (MCF) in order to thwart Deepak Fertilisers and Petrochemicals’ attempt to take over the Bangalore-based company.
Poddar said a decision on launching a counter offer for Mallya-controlled MCF would be taken either on Monday or Tuesday.
Upping the ante, Deepak Fertilisers and Petrochemicals had earlier raised its offer price from R61.75 to R63 per share for a 26% stake in MCF. The Sailesh Mehta-run company already has over 25% stake in MCF.
“My team and Mallya’s team are working jointly. We will be doing something jointly to prevent Deepak Fertilisers from acquiring a 51% stake in MCF,” Poddar told FE. At present, Poddar holds 16.43% stake in MCF through Zuari Fertilisers and Chemicals, while liquor baron Mallya’s UB Group, has about 22% stake in MCF.
Talking to FE on Thursday, the Adventz Group chairman said he had consulted Mallya on MCF. “I have discussed the issue with Mr Mallya over telephone…Our lawyers are working on the counter-offer,” he had said.
Analysts believe that there is a chance Poddar might offer a higher price for Mangalore Chemicals given that the synergies between the MCF unit and that of Zuari are far higher than those between Deepak Fertilisers and MCF. They point out that the plants are similar and located within close proximity to each other.
Poddar reportedly has a first-right-of-refusal treaty in place on Mallya’s shareholding in MCF.