Jul 07, 2005, 02.34 PM | Source: CNBC-TV18

Videocon merger ratio at 5:1

Videocon Industries, VI, and Videocon International Limited, VIL, are set to be merged, keeping up the steady flow of news the Group is generating over the past few days. Thomson, which will have 14% equity in VI, will have the power to nominate at least two people on the board.

On Thomson representation on the Videocon board.

Venugopal Dhoot


Videocon International

Videocon Industries , VI, and Videocon International Limited , VIL, are all set to be merged. The merger ratio is set at five shares of VIL to each share of VI. The merged entity is expected to have a market capital in excess of Rs 10000 crore.

Thomson, which will have 14% equity in VI, will have the power to nominate at least two people on the board of VI.

The company is to get rights for the Kelvinator and Allwyn refrigerator brands permanently because of the Electrolux deal. The deal also includes transfer of technology and OEM rights. Electrolux has also announced intentions to buy products from VI. Total worth of the deal, to be executed on a per-annum basis is expected to bring in Rs 5500 crore a year.

Excerpts from CNBC-TV18s exclusive interview with Venugopal Dhoot, CMD of Videocon International:

On the merger ratio for the two companies:

The merger ratio is decided to be 5:1, which is 5 shares of Videocon International for 1 share of Videocon Industries.

On the decisions taken in the board meet:

Videocon Industries
Equity capital: Rs 193.7 cr
Market cap: Rs 679 cr
Thomson has invested Rs 1,200 cr
Enterprise value: Rs 8,571 cr

The meeting of the Board of Directors is just over. This is the first agenda we have taken up in the meeting. We have also taken up the issue of the Thomson acquisition. We have informed the board that Thomson has taken 14% equity in the company and their people will be coming on board. The decision was taken today that we would have to take two persons from Thomson.


Videocon Ind stock price

On November 24, 2015, Videocon Industries closed at Rs 130.30, up Rs 0.00, or 0.00 percent. The 52-week high of the share was Rs 199.80 and the 52-week low was Rs 115.00.

The company's trailing 12-month (TTM) EPS was at Rs 1.41 per share as per the quarter ended September 2015. The stock's price-to-earnings (P/E) ratio was 92.41. The latest book value of the company is Rs 309.83 per share. At current value, the price-to-book value of the company is 0.42.

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