Essel group’s plan to acquire 62 per cent stake in LKP Finance has been dealt a blow following the change in liquidity position, said people in the know. They said that Essel has made payment for the 24 per cent it acquired during the open offer, but has not been able to pick up the promoters’ stake in LKP Finance.
The people added that Essel group may consider offloading its 24 per cent stake if the current promoters are able to find another investor to take over the company.
Last year, Dakshin Mercantile — an Essel group company — had made an open offer to LKP’s public shareholders to acquire up to 26 per cent stake. The deal was part of Essel’s strategy to get a listed platform for its holding companies. Acquiring LKP was expected to aid growth plans of Essel group in the financial space.
Source: Business-Standard