CHENNAI/MUMBAI: Coromandel International, a part of the diversified southern conglomerate Murugappa, has entered the fray to buy Vijay Mallya-managed Mangalore Chemicals and Fertilizers (MCF).
Mallya's investment holding company United Breweries Holdings owns 30.44% promoter stake in MCF, which has been long considered a non-core asset. UB Holdings , also the parent of the cashstrapped Kingfisher Airlines, has initiated a formal process to identify potential buyers for MCF.
Ambit Corporate Finance is advising UB Group on the divestment plan, the first such move by the beer-to-airline conglomerate to exit a business in more than a decade. Murugappa is among the six-seven potential bidders who have signalled initial interest after information memorandum on MCF was made available last week.
UB will determine the asking price after initial discussions with the bidders. "As a group policy, we would not like to respond to questions that are speculative and hence we are unable to participate ," a Murugappa spokesperson said. UB Group spokesperson denied developments.
The divestment move comes after a clutch of potential buyers approached UB exploring an MCF buyout. TOI earlier reported that Mangalore Refineries & Petrochemicals (MRPL), a unit of ONGC, wrote to Mallya in February this year conveying a potential interest. Zuari Fertilisers and Chemicals and Chambal Fertilisers are among the other interested suitors.
MCF makes both urea and complex fertilisers at its plant in Panambur (Karnataka) which started its operation in 1976. The company incurred a net loss of Rs 5.21 crore for that period
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