UB Group Chairman Vijay Mallya has said it is for the regulator SEBI to take a call on the promoter’s counter offer to Deepak Fertilizer’s offer to shareholders of Mangalore Chemicals & Fertilisers to pick up 26 per cent stake in the company.
Reacting to Deepak Fertilizers getting the Competition Commission of India (CCI) approval for its open offer for MCF, Mallya said its partner Zuari, which together with the promoter is making a counter-offer was a well-known fertiliser company, and has a similar product profile and is conveniently located close to the company.
“There are joint procurement synergies which we have already experienced. Their territories are complementary to each other and so it makes more business sense for us to have supported Zuari in the open offer. SEBI approval has come and the Competition Commission of India approval is hopefully expected in the very near future.”
Mallya was interacting with reporters after the company’s annual general meeting.
On the imminent price war between Zuari and Deepak Fertilizers for picking up stake in MCF, Mallya said “I think the combination of the current UB group and Zuari Holding speaks for itself. This is now a SEBI process. I cannot comment further on it. And I think both parties will have to comply with the SEBI requirement.”
Subsidy policyIn view of delay in execution of gas pipeline, MCF has requested the Union Government to continue subsidy policy for naphtha-based plants. Mallya said: “gas was promised to us which is the basis on which we have made the investment. But it seems that the gas connectivity would be at least two years late. Hence, we have requested the government to continue their subsidy policy.