Comments
Vijay Mallya-controlled UB Group and Saroj Poddar’s Adventz Group have provided each other a right of first refusal in relation to sale of their holdings in Mangalore Chemicals and Fertilizers (MCF), according to a disclosure to stock exchanges.
Poddar earlier claimed that he enjoyed the first right of refusal. However, a detailed public statement with regard to the duo’s counter-offer to acquire a 26 per cent stake of MCF now claims that Poddar is also agreement-bound to offer the shares to Mallya before he considers sale to a third party.
According to the statement, Mallya, Chairman of MCF, will continue to hold his position “for a period of five years from the date of completion of the competing offer”.
He will also be entitled to field three nominees on board of MCF against one of Poddar.
Poddar, who controls a little over 16 per cent stake in MCF, joined hands with Mallya (22 per cent), to help him retain control over MCF in the face of an acquisition bid from Sailesh Mehta-run Deepak Fertilisers and Petrochemicals Corporation. Deepak Fertilisers, which controls a little over 25 per cent in MCF, earlier came out with an open offer for acquiring a 26 per cent stake at ₹63 a share. In response, the Poddar-Mallya combine’s counter bid offered ₹68.50 a share. The market price of MCF is now hovering over ₹70 per share.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.