With Competition Commission's approval in place, Zuari Group is in discussions with investment bankers to launch its open offer in next 12 days to acquire additional 36.56 percent stake in MCFL.
On Tuesday, fair trade watchdog Competition Commission of India (CCI) had approved Zuari's open offer to acquire up to 36.56 percent stake in Mangalore Chemicals and Fertilizers Ltd (MCFL) for Rs 398.2 crore.
Kolkata-based industrialist Saroj Poddar-led Zuari Group, which is locked in a take-over battle with Pune-based Deepak Fertilisers, had launched the open offer in December last year for acquiring 25.9 percent stake in MCFL.
The firm later revised the offer to acquire 36.56 percent stake. Deals involving substantial acquisition of shares in companies need to be approved by CCI.
"At the moment, we are in discussions with investment bankers to finalise the date of open offer and as per the norms we have to launch open offer within 12 days of CCI approval," Zuari Global Managing Director Suresh Krishnan told Media.
The company had written to Securities and Exchange Board of India (Sebi) for extension of the tendering period as it had not received the approval from CCI.
"The tendering period for the open offer may commence not later than 12 working days from the receipt of CCI approval, and the payment to all successful public shareholders who tender their equity shares in the open offer.." the company had said, quoting Sebi's letter, on March 12. Two-way battle is going on between Zuari Group and Deepak Fertilisers for take-over of MCFL.
At the end of December 2014, Zuari Fertilisers & Chemicals Ltd -- which is part of promoter group -- held 16.47 percent stake in MCFL while that of Deepak Fertilizers stood at 29.05 percent. Vijay Mallya-led UB Group has over 21 percent stake in MCFL.
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