Videocon’s JV acquires Brazilian company
September 19, 2008 – 8:21 pmVideocon Industries, in consortium with public sector petroleum company Bharat Petroleum Corp Ltd, has acquired a Brazilian oil exploration firm EnCana Brasil Petroleo Limitada (EBPL) for Rs 1,309 crore (USD 283 million). A 50:50 joint venture of Bharat PetroResources Ltd (a BPCL subsidiary) and Videocon has completed the acquisition of the entire stake of EBPL from Canadian gas producers — EnCana Corp and Alberta Ltd.
The acquisition has been made for USD 165 million, while the JV would also pay USD 118 million as reimbursement the Canadian firms’ costs.
Last year, Indian entities had entered into an agreement with the Canadian companies to acquire their exploration arm saying that the deal was for their interests in 10 deep-water offshore exploration blocks in four concessions in Brazil. Investors at bourses cheered the move with Videocon share gaining more than 5% today.