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    Mangalore Chemicals & Fertilizers LTD & Paradeep Phosphate LTD Merger

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    aditiyab-pgdm-2022-24
    The boards of Mangalore Chemicals & Fertilisers Ltd (MCFL) and Paradeep Phosphates Ltd (PPL) approved a merger scheme where MCFL will merge with and into PPL. Under the terms, MCFL shareholders will receive 187 shares of PPL for every 100 shares of MCFL. The merger is subject to regulatory and shareholder approvals. Once completed, the combined entity will be one of the largest fertilizer companies in India with an aim to improve scale, operations, and customer engagement across the country. Current MCFL shareholders stand to realize an arbitrage gain of around 18.65% based on current share prices of the two companies.

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    Mangalore Chemicals & Fertilizers LTD & Paradeep Phosphate LTD Merger

    Uploaded by

    aditiyab-pgdm-2022-24
    36 views6 pages
    The boards of Mangalore Chemicals & Fertilisers Ltd (MCFL) and Paradeep Phosphates Ltd (PPL) approved a merger scheme where MCFL will merge with and into PPL. Under the terms, MCFL shareholders will receive 187 shares of PPL for every 100 shares of MCFL. The merger is subject to regulatory and shareholder approvals. Once completed, the combined entity will be one of the largest fertilizer companies in India with an aim to improve scale, operations, and customer engagement across the country. Current MCFL shareholders stand to realize an arbitrage gain of around 18.65% based on current share prices of the two companies.

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    Mangalore chemicals & fertilizers ltd & paradeep phosphate ltd merger

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    The boards of Mangalore Chemicals & Fertilisers Ltd (MCFL) and Paradeep Phosphates Ltd (PPL) approved a merger scheme where MCFL will merge with and into PPL. Under the terms, MCFL shareholders will receive 187 shares of PPL for every 100 shares of MCFL. The merger is subject to regulatory and shareholder approvals. Once completed, the combined entity will be one of the largest fertilizer companies in India with an aim to improve scale, operations, and customer engagement across the country. Current MCFL shareholders stand to realize an arbitrage gain of around 18.65% based on current share prices of the two companies.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    36 views6 pages

    Mangalore Chemicals & Fertilizers LTD & Paradeep Phosphate LTD Merger

    Uploaded by

    aditiyab-pgdm-2022-24
    The boards of Mangalore Chemicals & Fertilisers Ltd (MCFL) and Paradeep Phosphates Ltd (PPL) approved a merger scheme where MCFL will merge with and into PPL. Under the terms, MCFL shareholders will receive 187 shares of PPL for every 100 shares of MCFL. The merger is subject to regulatory and shareholder approvals. Once completed, the combined entity will be one of the largest fertilizer companies in India with an aim to improve scale, operations, and customer engagement across the country. Current MCFL shareholders stand to realize an arbitrage gain of around 18.65% based on current share prices of the two companies.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    Merger

    Mangalore Chemicals & Fertilisers Ltd (MCFL) and Paradeep Phosphates

    Ltd (PPL)
    Scheme of Merger

     THE BOARD OF DIRECTORS OF MCFL AND PPL, AT THEIR


    BOARD MEETINGS ON WEDNESDAY EVENING, APPROVED A
    COMPOSITE SCHEME OF ARRANGEMENT FOR THE MERGER
    OF MCFL WITH AND INTO PPL.
     ONCE THE MERGER DEAL IS EFFECTIVE, ALL
    SHAREHOLDERS OF MCFL WILL BE ISSUED SHARES OF PPL.
     RATIO IS 187 EQUITY SHARES OF PPL FOR EVERY 100
    EQUITY SHARES OF MCFL.
     THE MERGER IS SUBJECT TO THE APPROVAL OF THE
    NATIONAL COMPANY LAW TRIBUNAL(S), SHAREHOLDERS
    AND CREDITORS OF MCFL AND PPL, AND THE
    COMPETITION COMMISSION OF INDIA.
    Shareholding Pattern

    MCFL Share Holding Pattern


    PPL Share Holding Pattern

    5.62% 11.20%

    14.57%

    16.05%

    22.02% 56.08%

    60.63%

    7.08%
    5.08%
    1.61%

    Promotor & group FPI & FII Promotor & group FPI & FII
    Instutional investors NII Instutional investors NII
    Retail Investors Retail Investors
    Perspective Ahead

     The proposed combined entity will become one of the largest integrated private
    sector fertilizer companies in India, with a total manufacturing capacity of 3.6
    MMTPA (around 9% of national production)
     The move is also aimed at enhancing customer engagement, improve large deal
    capabilities, using the manufacturing capabilities of both entities, reaping the
    benefits of economies of scale, and optimizing supply chain.
     MCFL has a presence in the southern regions of India while PPL has a presence
    in the northern, central and eastern parts of India, making the proposed
    combined entity a pan-Indian fertilizer company,”
     In 2022 India imported around 17.26 Billion$ of Fertilizers as per UN
    COMTRADE data base, so the merged entity will have a huge potential as well
    as market to serve.
    Price Arbitrage

    Current share price of PPL 81.85

    Current share price of MCFL 129

    value of 100 share of MCFL 12900

    After Merger MCFL share holders will be issued, 187 shares of PPL

    which will be worth (187*81.85) 15305.95

    Price arbitrage gain for MCFL share holders 2405.95 18.65%

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