Archies in stake-sale talks with Videocon

Mumbai: Diversified group Videocon is in talks with greeting cards maker Archies Ltd for acquiring a stake in the company, Archies said.

''Videocon has not directly approached us to buy stake in Archies, but talks are underway through a middleman, though not necessarily only with Videocon,'' Archies chairman and managing director Anil Moolchandani said.

Reports, meanwhile, said entities owned by Videocon promotor Venugopal Dhoot have picked up over four per cent in Archies Ltd and the Videocon group has sent out feelers to the Moolchandanis for a possible buyout.

Moolchandani said Archies was looking to raise funds to finance its expansion plans through instruments, including private equity placement and debt. He, however, did not disclose how much the company plans to raise and how much it is willing to divest.

In a filing with the BSE, earlier in the day, the company, however, said it was not in talks with Videocon Group.

Reports said the Videocon Group is likely to step up share purchases and may even make an open offer for Archies.

Analysts expect Archies to consider divesting stake for around $100 million, the reports said.

The Moolchandanis had 62.44 per cent stake in Archies as of end-March.