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Videocon in talks to sell stake in telecom arm

MUMBAI:Consumer electronics major Videocon on Monday is in talks with foreign entities for a 26 per cent stake sale in its telecom subsidiary Videocon Telecommuni-cations. “You will see us diluting 26 per cent equity in our (telecom) business soon...we are looking for a total valuation of Rs.15,000-crore,” Videocon Chairman V. N. Dhoot told reporters on the sidelines of a function here.

His statement comes amidst reports of the diversified company being in talks with South Korean company S. K. Telecom, after having failed in talks with UAE's Etisalat and Turkey's Turkcell over valuation issues.

Mr. Dhoot, however, did not specify whether it would be a strategic sale or sale to a financial investor.

Replying to a query, he said “many foreign investors from Europe, the U.S. and Japan have been trying to enter the Indian market but have failed because of valuation issues.”

Videocon, which launched its GSM-based mobile telephony services in March, now operates in ten circles and has licences for all the 22 circles, according to Mr. Dhoot. — PTI

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