Videocon “’ selling
shares to finance
energy purchases
 
Mumbai, India — ESI-AFRICA.COM — 17 December 2010 – Videocon Industries Limited “’ India’s biggest consumer-electronics maker “’ plans to combine its energy assets and sell a stake in the business to help pay debt and fund purchases of oil and gas areas.
 
The company, led by billionaire Venugopal Dhoot, is in talks with investors, including Chinese companies, for the stake sale,” said group finance chief Suresh M. Hegde. Videocon may also sell as much as a 25% stake in its energy unit in an initial public offering within six months “to monetise oil and gas assets,” he added.

Videocon is betting that state-run Chinese companies, which bid a record US$38.8 billion (R263.8 billion) this year to acquire energy assets overseas, will extend their purchasing spree.

Chinese investors “give better value than any other investors,” Hegde, said in an interview here. “Chinese demand for oil assets is huge,” he added, but he didn’t name the investors.

India’s energy use may more than double by 2030 to the equivalent of 833Mt of oil from 2007, while China’s demand may rise 87% to 2.4 billion tonnes, according to the Paris-based International Energy Agency.