Crompton Greaves says no binding deal with Videocon on Kenstar acquisition

Crompton Greaves, one of India’s biggest electrical durables makers, said it has not executed any binding transaction documents with Videocon Industries on the acquisition of the Kenstar brand in India.

Responding to a report in the Economic Times that said a binding offer at Rs 1,400 cr has been submitted, Crompton Greaves said: “The results of the bid process have not yet been announced. Therefore, at this stage, no binding transaction documents have been executed between the company and the sellers, and there have been no negotiations in this regard.”

It said it submitted a bid and its comments on a ‘draft term sheet’ last month in response to a letter from Videocon Industries asking if the company was interested in buying the Kenstar business and the brand in India.

According to the report in Economic Times, the primary competitor for Crompton is PE fund Everstone Capital, which has bid Rs 1,350 cr. Over the last year, Orient Electric, Symphony, Havells and Voltas have also expressed interest, said the report.

The report said the deal is part of efforts by the Videocon Group to deleverage its balance sheet and pare down its debt of Rs 43,000 cr. The group has already sold some of its oil and gas assets as well as its Direct-to-Home or DTH business.

Crompton Greaves is largely present in the electrical-industrial side of the business, while Kenstar is stronger in the durables side of the business.