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Vijay Mallya quits Mangalore Chemicals and Fertilizers board

New Delhi: As UB Group continues to face growing shareholder activism, its Chairman Vijay Mallya today resigned as a director of group entity Mangalore Chemicals and Fertilizers Ltd (MCFL) without assigning any reasons.“Dr Vijay Mallya,
vijay mallya quits mangalore chemicals and...
PTI 02 Dec 2014, 11:05:39 AM IST

New Delhi: As UB Group continues to face growing shareholder activism, its Chairman Vijay Mallya today resigned as a director of group entity Mangalore Chemicals and Fertilizers Ltd (MCFL) without assigning any reasons.

“Dr Vijay Mallya, a Director on the Board of Directors of the Company, has resigned with immediate effect,” MCFL said in a filing to stock exchanges.

There was no reason given for the resignation, which came within days of minority shareholders of United Spirits rejecting 9 out of 12 resolutions, including those pertaining to pacts with entities connected to erstwhile promoter Mallya.

The resignation, which was followed by sharp 15 per cent spike in MCFL share price, also comes close on the heels of two unsuccessful open offers to wrest control of the company.

Mallya had joined forces with Kolkata-based industrialist Saroj Kumar Poddar to launch a counter-offer to Deepak Fertilizer and Petrochemicals' open offer.

Deepak managed to raise its stake to around 32 per cent in MCFL while Mallya-Poddar combine holds around a 38 per cent interest.

The board of MCFL is being restructured to include two representatives of Poddar's Adventz Group.

Shares of MCFL rose 15.3 per cent to Rs 94.05 apiece on the BSE soon after the announcement but closed a bit lower at Rs 89.85, a gain of Rs 8.25 or 10.11 per cent over Friday's close.

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