The Videocon group has decided to put on hold its plans to offload its 26 per cent shareholding in Samsung India Electronics Ltd (Samsung India) for at least a year, following failed negotiations with the Korean electronics giant.
Samsung has insisted that the valuation of the 26 per cent stake in the company cannot be Rs 500 crore as arrived at by the Dhoots.
"The market is down at the moment and we can understand Samsung's justification for the low price. We have decided to talk about the issue after the market picks up," Videocon group chairman Venugopal N Dhoot told Business Standard.
Dhoot does not expect a deal being arrived at in the next one year. On being asked why he proposed to sell off his stake at a time when he may not get a fair price in the current industry scenario, Dhoot says he wanted to initiate talks since these kind of deals take time to materialise.
Samsung executives, however, deny there has been any discussion between the partners.
A spokesperson for the Korean firm's Indian subsidiary said she had no comments to offer.
Dhoot also said that the two partners have decided that till the time an agreement is reached, Kuldeep Drabu, a Videocon representative on the board, will continue to hold the post of chairman of Samsung India. Videocon has another nominee on the Samsung India board.
Videocon holds the shares in Samsung India through a group firm called Reasonable Computer Solutions.
Sources said that the existing paid up equity share capital of the joint venture is Rs 60 crore, of which Reasonable has invested Rs 16.2 crore. Dhoot's demand is, therefore, 31 times the par value of the shares.
Samsung India's turnover in likely to touch Rs 2,800 crore this year, according to senior company executives.
In the first half of the year, the company registered sales worth Rs 1,247.4 crore compared with Rs 902 crore in the same period last year.
Samsung has a share of 8.5 per cent in the colour TV market and notched a 15.5 per cent share of the air-conditioner market.
Samsung H1 sales up 38.3%
Consumer electronics major Samsung India Electronics Ltd has posted a 38.3 per cent rise in its sales at Rs 1247.4 crore for six months ended June 2001 (H1), as compared to Rs 902 crore in the same period last year.
Its home appliance and electronic division contributed Rs 640.2 crore, while IT and telecom clocked a turnover of Rs 607.18 crore in the January-June period, Samsung vice-president (sales) R Zutshi said today.
Despite the sluggish condition in the colour TV market in January-April, its electronics and home appliance unit achieved a double digit growth in first half, Zutshi said. Siel's turnover in 2001 is likely to touch Rs 2,800 crore, he said.
Samsung has a share of 8.5 per cent in the colour TV market and notched a 15.5 per cent share of airconditioner market, Zutshi added.
