India's Videocon Seeking Buyer or Outside Investor
Published on: 19th Feb 2014
Note -- this news article is more than a year old.
India's Videocon Telecommunications has indicated that it is open to being bought by one of its larger rivals and is in talks with several companies.
The talks might lead to a takeover, or an investment in the company to fund its expansion, a senior executive told the Economic Times newspaper.
The company did not take part in the latest spectrum auction, which raised questions about its long term plans as a stand-alone company. Even with a new investor, the lack of fresh spectrum will hamper any long term growth plans.
Mukesh Ambani-run Reliance Jio Infocomm (RJI) has been recently suggested as a possibly buyer, or partner, seeking access to Videocon's existing 1800Mhz spectrum in eight circles. Such a deal would add to RJI's existing spectrum in 14 circles and give it nationwide reach.
"Like any growing organisation, we too seek partnerships and investments to grow our business, and there is interest shown by others for partnering and investment," chief executive Arvind Bali said. "Though such decisions take time and will be taken at the board level, we are open to exploring investment avenues and partnering with others."
Mergers and consolidation in the Indian market has long been expected, although most companies are waiting for the government to clarify the rules, especially on spectrum transfers before launching formal takeovers.
Fitch Ratings recently listed Videocon as one of the six companies it expects to sell up.
On the web: Economic Times