MCF battle heats up

Mangalore Chemicals and Fertilisers (MCF) is in the limelight today morning. The stock, which had closed yesterday at Rs.70.45, opening today morning at Rs.75, hitting an intra day high at Rs.75.45. The 52-week high stands at Rs.84.50.

The stock is up after Zuari Fertilisers, along with UB Holdings, Kingfisher Finvest and McDowell Holdings has made a counter offer for the 26% stake in MCF at a price of Rs.68.55/share, which is higher by Rs.5.55/share more than the offer price of Deepak Fertilisers of Rs.63/share.

Currently, as the per the shareholding pattern, Deepak Fert (through SCM Soilfert) holds 24.46% stake in MCF, Zuari has a 16.43% stake and Mallya holds through UB Holdings (15.05%), United Spirits ().01%), McDowell Holdings (4.92%) and Kingfisher Finvest (2.01%), a total of 21.98% stake.

As the battle for control over MCF heats up, there is a lot of uncertainty over who will ultimately get control but one thing seems certain – Mallya as a owner of MCF is over and we are to soon see a new promoter for MCF.