Delhi: The Videocon group has acquired the entire picture tube manufacturing
operations of Thomson SA, for €240 million. With this deal, Videocon
will own Thomson''s three manufacturing facilities in Poland, Mexico and China.
19,000,000 units of colour picture tubes along with 4,000,000 pieces colour
picture tube glass, per annum.
purchase agreement also allows Videocon to take over the R&D facilities
at various places in Europe and China and access to a large resource of the
patents and IPRS relating to technologies in colour picture tube segment.
one facility in China, which has the local Chinese government as a minority
shareholder, all the business interests are owned by Thomson.
Group has drawn out an ambitious plan to improve these facilities both qualitatively
as well as quantitatively by adding latest developments like slim tube, plasma,
LCD and other flat panel display lines into business interests to be acquired
and Thomson executed the agreement in Delhi where finance minister P Chidambaram
and Dominique Girard the French Ambassador. Videocon group, which comprises
of four mainline listed companies has managed this acquisition through a complex
deal with Thomson, which in the final analysis, will not involve any net outgo
acquisition of Thomson''s manufacturing units has been made through an offshore
entity of Videocon group in which other group companies like Videocon Communication,
Videocon Appliances and Videocon International hold 19 per cent equity each,
totalling 57 per cent. Videocon Industries has a 25-per cent interest in the
oil exploration from the Ravva field, which yields a net cash flow of more
than Rs 400 crore ($90 million)
part of the deal, Thomson will receive €240 million for the picture tube
business from Videocon. At the same time, Thomson will invest the same amount
in two listed Videocon companies - €225 million or about Rs1,200 crore
in Videocon Industries, which is mainly active in the energy sector, at $10
per share and €15 million or Rs80 crore in Videocon International.
will thus invest €240 million in Videocon group companies, exactly the
same amount as will be realised by the sale of its business.
With this acquisition, Videocon Group will emerge as among the largest global
manufacturers of colour picture tubes with the tube glass along. The company
already has business interests in manufacture of 17-million pieces per annum
colour picture tube glass facility in India. This is being expanded to 24-million
pieces per annum. Videocon also has business alliances with BPL and JCT ,
which have a combined capacity of 5-million colour picture tubes per annum.
integration of the colour picture tube business from Thomson SA with its Indian
business, the total turnover of the Videocon Group is expected to be Rs17,500
crore ($4 billion) with more than Rs.8,700 crore ($2 billion) coming from
aggregate investments envisaged for all these would be over $500 million,
in one or more tranches. The Group plans to fund this by accessing domestic
/ international debt / equity markets.