Anil Agarwal’s Vedanta group to buy Videocon’s majority stake in Rawa oil field

Anil Agarwal’s Vedanta group to buy Videocon’s majority stake in Rawa oil field

New Delhi, Jun 9 (PTI) Billionaire businessman Anil Agarwal’s Vedanta Group on Wednesday said it will make an advance payment of Rs 292 crore to acquire Videocon Industries Ltd.

With this acquisition, the group will become the largest shareholder in the Rawa oil and gas field in the Krishna Godavari oil field. The Rawa oil field produces 22,000 barrels of oil and oil equivalent gas per day.

The Mumbai Bench of the National Company Law Tribunal on Tuesday approved the acquisition of bankrupt Videocon Industries by Twin Star Technologies, a Vedanta group company.

Anil Agarwal’s Volcon Investments Ltd told the London Stock Exchange that its Twin Star Technologies India Ltd has submitted a resolution plan for the Videocon Group companies under India’s insolvency and bankruptcy law.

“The acquisition proposal for Videocon property involves an upfront payment of Rs 292 crore. which is less than ten percent of the total bid price. The balance amount will be paid after completion of two years from the date of acquisition.

Volcan Investments said, “We are excited about the acquisition of Videocon, and in particular its 25 per cent stake in the Rawa oil field. With this acquisition, our stake in the Rawa region will increase to 47.5 per cent.

It is noteworthy that Videocon is a consumer durables company that manufactures everything from washing machines to air-conditioners. Videocon was one of the first 12 companies to go bankrupt after the Reserve Bank of India directive in 2017.

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The company has outstanding debt of Rs 59,451.87 crore as on November 12, 2018, of which Rs 57,443.62 crore is from more than three dozen banks and financial institutions. Apart from this, other operational creditors have claims of Rs 25,553 crore.

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