Videocon to set up greenfield unit in S Africa

Videocon group plans to set up a greenfield manufacturing project for white goods in South Africa.

Chairman Venu Gopal Dhoot said the group would produce and market air conditioners, washing machines, refrigerators and colour televisions in South Africa shortly.

He claimed that with the setting up of the project, his empire would emerge as the first Indian business house having operations across the globe.

He, however, declined to divulge further details of the project.

Alongside, Dhoot said the group was keen to acquire oil blocks in Sudan, Niger and Nigeria. He said the group was bidding for four blocks in Sudan, two in Niger and three in Nigeria and NELP V.

Merchant banking sources said the company would acquire 76 per cent in one or more oil fields in Sudan with an initial investment of $ 100 million. A MoU has already been inked with the Khartoum State of the Republic of Sudan through Videocon Industries. An announcement would be made next week.

The Videocon group's oil and gas interest includes 25 per cent stake in Ravva oil field, which is expected to give net cash accruals of more than Rs 400 crore per annum.

Videocon also has plans to involve in gas distribution in Andhra Pradesh and Gujarat.

Okays merger swap at 1:5

Videocon Industries and Videocon International have today approved a swap ratio for the proposed merger of two companies.

Shareholders of Videocon International will receive one equity share of Videocon Industries for every five shares they held.

Development Bank of Singapore (DBS) and ICICI Bank advised the Videocon group on the merger. The banks will also advise on possible mobilisation of resources to meet the new challenges.