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Mar 05, 2013, 08.48 PM IST
2013 may keep cash registers of Videocon ringing, as the company is all set to launch 4G services in India and sell its stake in Mozambique gas field.
According to a Reuters report, the company has already started the auction of a 20 percent stake in a Mozambique gas field along with US based Anadarko Petroleum Corp.
Videocon Industries stock hit an intraday high of Rs 207.20 on the Bombay Stock Exchange following development in the company's telecom and oil and gas business.
Videocon Group's direct-to-home (DTH) arm Bharat Business Channel Ltd’s initial public offering is likely to hit the market in a month, Chairman Venugopal Dhoot told CNBC TV18 in an interview.
He stressed that the group's DTH business was doing really good and hence it will like to extend the benefits of this business to investors as well.
Mozambique gas field
Videocon Industries has been considering selling its 10 per cent stake in Mozambique's Rovuma basin since September, after Andarko Petroleum, the operator of the basin declared discovery of new gas reserve in the area. As a result of this discovery, the gas field, which holds proven reserves of 60 trillion cubic feet (TCF) could have increased as much as 100 TCF. Several global companies like PetroChina, Exxon Mobile Corp, Royal Dutch Shell are interested this block.
According to various media reports, Indian company ONGC has been in talks with Videocon Industries for its 10 percent stake. Although Dhoot denied providing any details on the Mozambique stake sale in the interview, he said that the company had appointed Standard Chartered Bank, UBS for negotiation with possible buyers. "It will be very soon. Some news will be coming. I can't say the timeline, but it's a good proposal and there are lots of interests across the globe," he said.
Videocon is reportedly seeking at least $3 billion for its 10 percent stake. "Six months back, PTT has sold 8.5 percent at around USD 2 billion. We have got 10 percent and after that more discovery has come, discovery has become double. So, it is not proper to disclose my price, but it should be a very high price that we will be getting very soon," Dhoot said while commenting on the price, the company is seeking for the block.
The proceeds from the stake sale may be utilised to bring down debts on Videocon Industries' books, Dhoot added.
Videocon plans to launch its 4G services in India post trial-runs, as 4G has not been yet launched by any other player in the market. Post cancellation of its 21 licenses under 2G scam, Videocon had won spectrum licenses for six telecom circles- Bihar, Gujarat, Haryana, Madhya Pradesh, Uttar Pradesh East and West.
Despite tough competition Videocon has no immediate plans to monetize its telecommunication assets. On possible sale of its telecom assets Dhoot said, "Videocon is a very deep rooted consumer brand. So, our brand will definitely penetrate all over India and we will have a good market in times to come. If good proposal is there some joint venture also can take place, full sale will not take place."
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