Money Crunch Forces Lucky to Seek More Time for Acquiring Lotte Chemical Pakistan

Lucky Core Industries (PSX: LCI) (Formely ICI Pakistan) is unable to sign the share purchase agreement (SPA) in order to take over the entire 75.01 percent stake in Lotte Chemical Pakistan Limited (PSX: LOTCHEM), a unit that mainly produces purified terephthalic acid (PTA).

According to Bloomberg, LCI seeks a 3-month extension for acquiring LOTCHEM and aims to complete the buyout in April. In a stock filing, the company said it will not be able to proceed with the offer by January 22, 2023, as the parties have not yet signed SPA for full acquisition.

People familiar with the situation suggest it is highly likely that the issue could be due to the non-availability of US dollars, shrinking PTA margins, slowed business activities, and ballooning trade debts.

At the time of filing, LCI’s scrip at the bourse was Rs. 569, up 0.35 percent or Rs. 2 with a turnover of 200 shares on Thursday.

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