Zuari likely to sell back Manglore Chem stake to Mallya

Vijay Mallya's position in Mangalore Chemicals & Fertilizers (MCF) is set to get stronger. Zuari, promoted by Saroj Poddar, says it will sell its 16.5 percent stake in the company to Mallya by December unless a higher bid comes along.

It will be an interesting end to the fight that is going on for the last one year for Mangalore Chemicals. Reports suggest that Zuari group will look to sell its 16.5 percent stake to Mallya by the end of December.
At the current market price, the 16.5 percent stake which the Poddar family holds, will cost Mallya close to Rs 108 crore.

Also Read: Will sell MCF stake if Mallya keeps mum on JV plan: Zuari

They will also have to make a 26 percent open offer for minority shareholders, taking the cost up to another Rs 170 crore. So all put together, Mallya will have to spend close to Rs 280 crore.
As of now, it is unclear whether Mallya will be interested in spending Rs 280 crore more for a stake in his own company. But it looks like if Mallya is not willing to buy this out, the Poddar family will eventually exit instead of making an hostile bid or attempt to take a control of this company without Mallya's consent.