Deepak Fertilisers & Petrochemicals Corporation on Wednesday acquired 24.46 per cent stake in Vijay Mallya-promoted Mangalore Chemicals and Fertilisers through open market transactions for about Rs 180 crore.
After the acquisition, Mangalore Chemicals and Fertilisers promoter UB group will be reduced as the second largest shareholder in the company behind Deepak Fertilisers, but both companies said that control will continue to remain with Vijay Mallya group.In a filing to the BSE, Deepak Fertilisers and Petrochemicals Corporation said its wholly-owned subsidiary SCM Soilfert limited “has acquired 2,89,91,150 equity shares of face value of Rs 10 each representing 24.46 per cent of share capital of Mangalore Chemicals & Fertilisers ltd”.
Deepak Fertilisers and Petrochemicals has bought about 2.36 crore shares through several block deals at Rs 63 per share. Another nearly 54 crore shares have been bought through open market.The deal come close on the heels of Zuari Fertilisers buying about 10 per cent stake in the Mangalore Chemicals and Fertilisers in April from SBI group entities and open market.Reacting to the development, Managalore Chemicals and Fertilisers (MCF) spokesperson said: “There is no takeover battle for MCF and UB group will retain its control over MCF”.
UB group holds 22 per cent stake in Mangalore Chemicals and Fertilisers ltd as on March 31.When contacted, a senior official of Deepak Fertilisers said that “We have done block deals of close to 20 per ecnt and the balance (was) purchased from market. We have not bought shares from promoters”.
The size of the deal is about Rs 180 crore, he said, adding that the control on MCF would remain with the original promoter.“Given our considerable strengths in the fertiliser business, the investment is very strategic and a good fit with the company’s business. DFPCl looks forward to working closely with MCFl to enhance long-term value for the shareholders of both companies,” Deepak Fertilisers said in a statement.