Vedanta buys Videocon majority stake for Rs 292 cr

Billionaire Anil Agarwal’s Vedanta Group on Wednesday said it will make an upfront payment of almost $40 million (about Rs 292 crore) for the acquisition of Videocon Industries Ltd, which will help it become the largest shareholder in the Ravva oil and gas fields in KG basin.

The National Company Law Tribunal’s Mumbai Bench on Tuesday approved the acquisition of bankrupt Videocon Industries by Vedanta Group firm Twin Star Technologies, with the lenders set to take a haircut of about 90%.

In a filing to the London Stock Exchange, Agarwal’s Volcan Investments Ltd said its wholly-owned Indian subsidiary, Twin Star Technologies India Ltd had submitted a resolution plan for Videocon Group companies, under the Insolvency and Bankruptcy Code of India.

“The bid for the Videocon asset consists of an upfront payment of almost $40 million and the rest deferred payments shall begin post completion of two years from the acquisition date,” it said. Agarwal made a fortune buying state companies and fixing them up, building a metals and mining powerhouse. His group acquired state-owned BALCO in 2001 and Hindustan Zinc in 2002 and bankrupt assets such as Electrosteel and Ferro Alloys Corporation Limited. PTI