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HomeBusinessVijay Mallya Quits Mangalore Chemicals Board

Vijay Mallya Quits Mangalore Chemicals Board

As UB Group continues to face growing shareholder activism, its chairman Vijay Mallya on Monday resigned as a director of group entity Mangalore Chemicals and Fertilizers Ltd (MCFL) without giving 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 provided 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 Mr Mallya.

The resignation, which was followed by a 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.

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

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

MCFL’s board is being restructured to include two representatives of Mr 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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