Vijay Mallya quits as Mangalore Chemicals director

Mangaluru, Dec 1: In a surprise move, the United Breweries Limited Chairman Vijay Mallya has resigned from the Board of Directors of Mangalore Chemicals and Fertilizers Ltd (MCFL).

The resignation comes at a time when MCFL is amidst a takeover battle between Deepak Petrochemicals and Fertilizers and Zuari Agro Chemicals and Fertilizers. Mr Mallya had sided with Zuari to ward off the takeover bid of Deepak Fertilizers.

The MCFL is a fertilizers manufacturing company situated on the outskirts of the city of Mangaluru. The company with its wide range of products that include urea, di-ammonium phosphate, muriate of potash, granulated fertilizers, micronutrients, soil conditioners and specialty fertilizers, touches and enriches the lives of farmers across southern India.

The reason behind Mr Mallya's resignation is still unknown. The post of director may for now remain vacant. The company on Monday intimated this development to the stock exchanges. Soon after the announcement MCFL stock prices rose sharply on the stock markets.

The prices moved from Rs. 80 range to around Rs. 92. The volume was as high as nine lakh shares in early morning trade.

Recently, Deepak's bid to acquire 26 per cent addition stake had failed and Mr Mallya had retained control over the company.

Currently Deepak holds 32 per cent stake in the company, Zuari 16 per cent, UB Group 22 per cent and the rest by public shareholders.

Last week shareholders of United Spirits of which Mr Mallya is chairman, rejected nine of 12 proposals at an EGM, in a major setback for the liquor baron.