Zuari to sell MCFL stake if JV with UB Group doesn't happen
Zuari Fertilizers promoter Saroj Poddar today said he will sell his 16 per cent stake in the Mangalore Chemicals and Fertilizers Ltd (MCFL) if a joint venture with the firm's promoter UB Group does not materialise.
September 26, 2013 / 21:33 IST
Zuari Fertilizers promoter Saroj Poddar today said he will sell his 16 per cent stake in the Mangalore Chemicals and Fertilizers Ltd (MCFL) if a joint venture with the firm's promoter UB Group does not materialise.
Also Read: Will sell MCF stake if Mallya keeps mum on JV plan: ZuariPoddar's statement comes two days after UB Group Chairman Vijay Mallya had said that he was ready to buy stakes from Zuari and Deepak Fertilisers in MCFL. In UB group's MCFL, Zuari currently has 16.43 per cent stake while Pune-based Deepak Fertilisers and Petrochemicals has about 24.46 per cent stake."Mallya has said that he is keen to buy shares in MCFL held by Zuari Fertilisers. If Mallya is keen to buy shares, I am more than willing to sell my shares," Saroj Poddar said when asked about his comment on Mallya's offer."As a business professional, Mallya has every right to take a decision. I will respect his decision. If he is willing to go for joint venture, I am ready."If he does not, I am okay with it. And if the JV does not happen, I will sell MCFL shares to the highest bidder as I will have to protect my shareholders' interest. I hope this will happen soon," Poddar told reporters on the sidelines of an event here.Poddar said that Zuari had bought shares of MCFL in consultation with Mallya with an idea of floating joint venture between the two companies."I have bought shares of MCFL in consultation with Mallya. And this was based on an idea of floating joint venture with Zuari. It was very clear. I also have first right of refusal of MCFL shares with UB Group," Poddar said.Shares of MCFL today closed at Rs 52.30, up 1.65 per cent. At current price, Zuari's stake in MCFL is worth Rs 102 crore. After touching 52-week low of Rs 27.30 on March 4, the stock jumped to 52-week high of Rs 73 in second week fo July.While speaking to media on September 24 in Bangalore after the Annual General Meeting, Mallya had said that the focus is on UB maintaining control over MCFL."I intend to keep MCF within the UB Group fold and that we are not sellers and if either of them (Saroj Poddar of Zuari and Sailesh Mehta of Deepak Fertilisers) wish to sell their shares we would be happy to buy them," Mallya had said earlier this week. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
