MCFL shareholder moves SEBI against Zuari open offer

A minority shareholder of Mangalore Chemicals and Fertilizer (MCFL) has petitioned SEBI against UB Group and Saroj Poddar-led Zuari Group launching an open offer to buy additional stake in the company.Nagreeka Foils Ltd, which holds 3.5 lakh shares in MCFL, in its letter to the market regulator has also sought removal of Vijay Mallya as director on the company's board."The continuation of Vijay Mallya, a wilful defaulter, as a promoter or director of MCF will prejudice our rights as a minority shareholder of MCF," Nagreeka Foils said in a letter to SEBI on September 11.Nagreeka Foils has also sought that SEBI should unwind the agreement between the Saroj Poddar-led Zuari group and MCFL's existing promoters for making a competing open offer to buy additional 26 per cent in MCFL.UB Group has joined hands with the Zuari to ward off a hostile takeover bid by Deepak Fertilizers for MCFL.In June, Zuari Fertilisers and Chemicals and Zuari Agro Chemicals had entered into a pact with UB group comprising of United Breweries (Holdings) Ltd, Kingfisher Finvest India Limited and McDowell Holdings Limited.Yesterday, fair trade watchdog CCI cleared Zuari's proposal to buy additional 26 per cent stake in MCFL.Deepak Fertilizers, which is also in the fray to snap up stake in MCFL, last month received the green signal from the Competition Commission of India for its Rs 190-crore open offer.