As an agreed deal, Videocon a major consumer durable is on a brink clinching a global deal to acquire the world-wide business of ailing Korean durables major, Daewoo Electronics, it is reliably learnt. While the final valuation is expected to be worked out by this month-end, Videocon may have to pay around rs 450-500 crore, sources said.
Refraining from offering any comments, Venugopal Dhoot, a Videocon chairman, says "when we finalise anything, we shall inform the stock exchange first,". However, informed sources said intense negotiations have been taking place over the past few weeks. Videocon has a cash flow of about $22.5m and is capable to finance the deal on prorata. "There will be no further acquisitions in the next fiscal. We need to consolidate our positions now", he said.
Videocon is keen on the Daewoo acquisition as it would enable the company to reinforce its position in the countries like US, Korean, Japanese and European markets, where it has currently very little presence. Currently, Daewoo has a tie-up with Anchor Electronics in India which has failed to launch successfully.