Fertiliser maker Coromandel International is close to snapping up the Vijay Mallya-led UB Group's 30.4 per cent stake in Mangalore Chemicals and Fertilisers Ltd (MCFL), according to reliable sources.
Coromandel, part of the Rs 17,000-crore Murugappa Group, is ahead of its competitors Zuari Industries and Chambal Fertilisers & Chemicals in acquiring the UB Group's stake in MCFL. The company could make an announcement in the next few weeks, sources familiar with the matter said.
Mr Vijay Mallya, who heads cash-famished Kingfisher Airlines, has been looking at exiting the fertiliser business, after it was approached by fertiliser players for buying out UB Group's holding in MCFL. The UB Group's stake in MCFL is estimated to be worth about Rs 150 crore.
Mr Mallya has been looking at raising funds to tide over problems related to Kingfisher Airlines' debt of over Rs 7,000 crore. His United Breweries (UB) Group is a conglomerate with annual sales of over $4 billion.
When contacted, Mr S. Sankarasubramaian, Coromandel International's Chief Financial Officer, said that the company was always open to acquisitions, but declined to comment on the matter related to MCFL.
Asked whether the company had adequate cash chest for acquisitions, he said that Coromandel's cash surplus at the end of March 31, 2012, was about Rs 917 crore, with a healthy debt-equity ratio.
Last year, it acquired about 70 per cent stake in Sabero Chemicals, including 42.2 per cent promoters' stake, for about Rs 450 crore.