SCM Soilfert Ltd, a subsidiary of Pune-based Deepak Fertilizers and Petrochemicals Corporation (DFPCL) has sold a 2.20 per cent stake in Mangalore Chemicals & Fertilisers Limited (MCFL). The sale comes as a surprising move when Deepak Fertilisers is fighting with Saroj Poddar-led Zuari group for the control of MCFL.
DFPCL and Zuari Group have been engaged in tough competition for over a year to take control of Vijay Mallya-led MCFL.
In a filing to the BSE, SCM Soilfert Ltd, said that it has sold around 26.07 lakh shares, which accounts to around 2.20 per cent of the total shareholding of the company.
According to the filing, the sale was executed in the open market in seven transactions from December 1 to December 31, 2014.
After the stake sale, the holding of DFPCL through its subsidiary in MCFL, has come down to 29.05 per cent from 31.25 per cent. Even after the stake sale, Deepak Fertilizers is the largest stakeholder in the company.
As of September 30, 2014, UB group has 21.97 per cent stake and Zuari group has 16.47 per cent stake in the MCFL.
The stake sale announcement comes after one week, when Zuari group announced its plans to spend Rs.398.2 crore to buy up to 36.56 per cent stake in MCFL. The offer was about 10 per cent more than the company’s earlier offer.
According to reports, the war for buyout of MCFL by Deepak Fertilizers and Zuari started with the latter buying 10 per cent stake in 2013. Later Deepak Fertilizers increased the stake in MCFL to 24.46 per cent in 2013 and again increased it to 31.25 per cent resulting in a mandatory open offer.
