Videocon Names UBS As Advisors on Motorola Handset Deal

Indian consumer goods giant, Videocon which recently announced an interest in Motorola's handset division has appointed the financial group, UBS as its lead advisor in the negotiations.

"I have thrown my hat in the ring. And they will say it is a good hat as it is an Indian hat," Venugopal N. Dhoot, the chairperson and managing director of Videocon, told reporters on the sidelines of a conference on trade pacts here.

"UBS are our bankers," said Dhoot, while declining to divulge financial details. "We have sent our expression of interest to Motorola. In the US, it takes about a year for necessary regulatory approvals to take place."

An acquisition would be difficult as Motorola's handset division is independently valued at around US$3.8 billion, whilst Videocon Group values itself at US$2.5 billion (independent valuations are around the US$2 billion mark). The company has successfully raised in principle $700 million in financing for a recent attempt to buy South Korea's Daewoo Electronics. The bid was rejected by the firms creditors - and the recent credit crunch could make raising the debt more difficult the second time round.

Videocon is an industrial conglomerate with interests all over the world and based in India. The group has 17 manufacturing sites in India and plants in China, Poland, Italy and Mexico. Turnover in 2007 was US$4.7 billion

Posted to the site on 7th April 2008