The Hindu Business Line : China's Lifan in talks for LML assets

Two-wheeler maker LML Ltd seems to be close to finalising a strategic partner in the company. Industry sources tracking the development say that Chinese automotive major Lifan, which has been attempting to script an entry into the Indian market for a couple of years now, is learnt to have entered into negotiations with LML to purchase the latter's two-wheeler assets.

LML officials, however, declined to comment on the matter when contacted. Earlier, Mahindra & Mahindra (M&M), which is looking to make a foray into the two-wheeler market, was rumoured to be conducting due diligence for buying LML's assets.

Denies due diligence

LML had, however, officially denied that M&M was conducting due diligence to purchase the plant. Sources point out that M&M is most likely to go it alone to set up its two-wheeler project. According to market watchers, the company is most likely to set up its motorcycles assembly facility adjacent to its three-wheeler plant in Haridwar. They added that M&M has finalised three engine options for its motorcycles.

Stock up by 50 pc

In anticipation of a tie-up, the LML scrip, which hit its 52-week low of Rs 30 on April 28, has jumped by almost 50 per cent since then to close at Rs 43 on the BSE on Friday. The company's promoters had recently issued equity shares to Merrill Lynch Capital Markets Espana S.A and Credit Suisse (Singapore) Ltd.

More Stories on : Two/Three Wheelers | Mergers & Acquisitions

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