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In an unexpected move, Deepak Fertilisers and Petrochemicals Corporation sold 2.2 per cent of its stake in Mangalore Chemicals and Fertilizers (MCFL) through nine open market transactions last month for an undisclosed amount. The stake was held by Deepak Fertilisers’ wholly-owned subsidiary SCM Soilfert.
The stake sale, comprising 2.61 lakh equity shares, comes amidst an intense battle between Deepak Fertilisers and Zuari Group to take control of MCFL.
Though the Pune-based Deepak Fertilisers will still be the largest shareholder in Mangalore Chemicals with 29.05 per cent stake, market experts were stumped by the company’s move to reduce its stake at a time when it is looking to gain control of MCFL. When contacted by BusinessLine , Deepak Fertilisers refused to assign any particular reason for the sale.
Both Deepak Fertilisers and Zuari Group have been making offers and counter-offers. Deepak Fertilisers’ open offer to acquire up to 25 per cent in MCFL at ₹93.60 per share closed in October last year.
Following this, Zuari Fertilisers announced an offer to buy 25.90 per cent at ₹91.92 a share and later increased the offer size to 36.56 per cent. If the revised offer is fully subscribed, the company has to shell out ₹398 crore.
The last date for Deepak Fertilisers to announce a counter offer expired on January 2. Analysts reckon that the company can still raise its stake by 5 per cent in MCFL through open market purchase.
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