Mangalore, Sep 27: In an intense battle for a controlling stake in Mangalore Chemicals and Fertilizers (MCF), both Zuari Group and Deepak Fertilisers have revised their open offer price upwards to buy out the additional 26% in the company.

While Deepak Fertilisers has revised its final offer from Rs 63 per share to Rs 93.60, Poddar, who had teamed up with UB Group chairman Vijay Mallya, raised the offer price to Rs 81.60 from Rs 68.55. Market analysts feel Deepak Fertilisers has the edge as its offer price is Rs 12 higher than that by the Zuari-UB combine.
Interestingly, if Deepak Fertilisers' offer becomes successful, the Mallya-led UB group would lose control over MCF.
Buoyed by the revised offers, the MCF stock closed at Rs 88.10 on the Bombay Stock Exchange on Friday, nearly 20% higher than the previous day's close.
Mehta-led Deepak Fertilisers holds 25.31% in MCFL, Poddar's ZFC holds 16.43% and the promoter UB group has a shareholding of 22.91%.
Commenting on the price revision, Deepak Fertilisers and Petrochemicals president and CFO Somnath Patil said, œOur average purchase price of MCF shares works out to Rs 78 per share. We feel that this is a fair representation of the value of MCF, considering its synergies with our business in terms of product portfolio and geographic spread, its infrastructure facilities and the potential for further growth. We see value creation opportunities over the medium to long term.
Poddar could not be contacted for comments.
The Competition Commission of India (CCI) had earlier cleared the open offer launched by both Zuari Group firms and Deepak Fertilisers. The open offer will start on October 1 and close on October 17. The last date for an upward revision in the price or size was September 25.
ZFC is a wholly-owned subsidiary of Zuari Agro Chemicals. According to the agreement between Zuari and UB groups, ZFC would be funding the takeover bid. If their bid for shares succeeds, it will cost more than Rs 251 crore while for Deepak Fertilisers it would be above Rs 288 crore.


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