No Sebi Suspension Of Lkp Financing

Contrary to what was reported in Business Standard on February 8, SEBI has only directed LKP Merchant Financing Limited not to take up any further assignment till its inquiry into the case is pending.

LKP Merchant Financing Limited has also clarified that it is not acting in the capacity as an acquirer or offerors, but merely in the capacity as intermediaries. Therefore, LKP Merchant Financing Limited cannot and has not made any commitment with regard to payment of money to the shareholders of Skyline NEPC Limited.

According to LKP Merchant Financing Limited, the true facts are as follows :

Pursuant to the acquisition of Damania Airways Limited, now known as Skyline NEPC Limited (SNL), an open offer was made by Ravi Prakash, Rattan Kumar, Madhu-sudan, Rajkumar and Tirupathi Kumar to acquire from the existing shareholders of SNL a minimum of 20 per cent of its issued capital.

 

This open offer was made pursuant to a letter of offer dated January 12, 1996 in accordance with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations, 1994.

Pursuant to a memorandum of understanding entered into between the offerors and LKP Merchant Financing Limited, the latter was appointed by the offerors as the managers to the offer.

The offerors, for various reasons known to them, failed to make payment to the shareholders of SNL, but accepted the offer of the offerors to sell their shares in SNL to them. LKP Merchant Financing Limited are merely the managers to the offer.

The offer to purchase the shares in SNL is being made by the offerors. It is the obligation of the offerors to acquire and make payment for the shares. LKP Merchant Financing Limited has no obligation to make payment for the shares.

LKP Merchant Financing Limited has stated that the report, published in Business Standard dated February 8, 1997 was based on false information.

Business Standard regrets the unintended error and offers an apology to LKP Merchant Financing Limited.