Videocon gains 4.5%, d2h arm sells some stake to US company

Shares of Videocon Industries gained 4.5 percent intraday Tuesday as media report suggested that its subsidiary sold some stake to US company.

Satellite television operator Videocon d2h agreed to sell shares worth up to USD 375 million to US-based Silver Eagle Acquisition Corp and the proceeds will be used to expand its services.

Silver Eagle will own between 33.5 percent and 38.6 percent of Videocon d2h for USD 300 million to USD 375 million, the two firms said in a statement late on Monday. The deal will result in the listing of the Indian company in the United States.

Videocon d2h, part of the diversified Videocon Group, plans to list the American depositary shares, which will be issued to Silver Eagle, on the Nasdaq stock exchange, the companies said. Videocon d2h had earlier filed papers with the Indian market regulator for a local listing.