New Delhi: Vijay Mallya-led UB Group's MCFL, which is the takeover target of two rival fertiliser firms, will pay only a token salary of Re 1 per month to its Managing Director Deepak Anand in the current fiscal. The salary of Re 1 a month has been approved by shareholders for 2014-15, as also for the subsequent year 2015-16, till the next annual general meeting takes place.
Anand was deputed by UB Group as Managing Director of Mangalore Chemicals & Fertilizers Ltd (MCF) in April 2005 and since then he has been paid Rs one per month as token salary. Meanwhile, Anand is on the rolls of UB Holdings as President, Fertilisers. Intensifying the battle for acquisition of MCFL, Deepak Fertilisers and Zuari Group both on September 26 raised their open offer prices to Rs 93.60 per share and Rs 81.60 per share, respectively.
Deepak Fertilisers had launched open offer to buy additional 26 per cent stake in MCFL in April this year at Rs 63 per share following which Zuari and UB group joined hands in May and launched open offer for same number of shares at Rs 68.55 per scrip. The battle for control of Mangalore Chemicals heated up again after the Competition Commission of India (CCI) cleared an open offer launched by Zuari Group firms on September 4.
The CCI had cleared the open offer of Deepak Fertilisers on August 19. After this, both parties have announced that the open offer will start on October 1 and close on October 17. The last date for upward revision of the offer size or price was September 25. At present, Deepak Fertiliser holds 25.31 per cent stake in MCFL, whereas consortium of Zuari group companies have 16.43 per cent stake and Vijay Mallaya's UB group 21.97 per cent stake.
Later, Deepak Fertilisers acquired 24.46 per cent stake in MCFL in one go in July 2013. After this, Zuari group had increased its stake to 16.43 per cent in the same month.
