Moneycontrol
Sep 25, 2012 12:18 PM IST | Source: Moneycontrol.com

Mangalore Chemicals up 11% on stake sale buzz

Liquor baron Vijay Mallya-led UB group's Mangalore Chemicals and Fertilisers rallied as much as 11% intraday Tuesday as two bidders are eyeing stake in the company.

Mangalore Chemicals up 11% on stake sale buzz

Liquor baron Vijay Mallya-led UB group's Mangalore Chemicals and Fertilisers rallied as much as 11% intraday Tuesday as two bidders are eyeing stake in the company.

The Times of India reported that two strategic bidders are conducting due diligence to acquire UB Group chairman Vijay Mallya's 30.44% stake in Mangalore Chemicals & Fertilizers (MCF), as the beleaguered billionaire looks to raise cash by selling non-core assets to recapitalize debt-laden Kingfisher Airlines.

Its group company United Spirits (USL) today confirmed that Diageo Plc, world's biggest drinks company, is in talks to buy a stake in the Vijay Mallya owned firm.

"United Spirits and Diageo confirm that Diageo is in discussion with United Spirits and United Breweries (Holdings) in respect of possible transactions for Diageo to acquire an interest in United Spirits," it said in a notice to stock exchanges. However, there is no certainty that the discussions will lead to a deal, USL said.

At 12:06 hours IST, MCF was trading at Rs 47, up 7.43% amid hefty volumes. Market capitalisation of the company currently stands at Rs 557.02 crore.

USL share jumped 3.5% to Rs 1,090.90.

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