Saroj Poddar-controlled Zuari Fertilisers and Chemicals, which holds a 16.43 per cent stake in Mangalore Chemicals & Fertilizers Ltd (MCF), is back in the race to acquire the UB group firm.
Poddar, who had earlier said he would sell his stake in the company, apparently changed his mind after UB Group chairman Vijay Mallya dropped his plan to buyout other stakeholders, according to people aware of the development.
Sailesh Mehta-run Deepak Fertilisers and Petrochemicals Corporation Ltd, which holds a 24.46 per cent stake in MCF, is also in the race to take control of the fertiliser maker. Zuari picked up the 16.43 per cent stake in MCF in early 2013, hoping to strike a ‘friendly’ deal with Mallya.
The UB group chief, however, denied such possibilities. “I intend to keep MCF within the UB Group fold,” Mallya told reporters on September 25 last year, adding that “If either Saroj Poddar or Sailesh-bhai” was willing, he could buy out their stake.
New twist Poddar immediately offered to sell his stake to the highest bidder latest by December. The deadline was later extended to February 2014. This had in effect left only Deepak Fertilisers in the fray. Under pressure from lenders, Mallya dropped his plan to buy back shares from Poddar or Mehta.
Mallya owns a 22 per cent stake in MCF through United Breweries Holdings Ltd (UBHL). Around 10 per cent shares are pledged with lenders.
Given a chance, the debt-ridden UB group may get out of the fertiliser business for a premium, say sources.
Though no such decision can be taken immediately as a December 2013 order by the Karnataka High Court prevents UB from selling any of its assets, once the legal issues are settled, a deal can be worked out.
None of the camps is ready to talk on the issue, but sources say Poddar is now keen to stay on and wait for an opportune moment to wrest control of MCF.
Poddar reportedly has the first right of refusal on UB group’s stake in MCF.
Sources say Deepak Fertilisers has not lost hope either.