Videocon to take heat of Mozambique tax norms
“Mozambique will treat the deal to be under the purview of the new tax laws as the closing of the deal will most likely happen in 2013,” the person added. When contacted, Videocon’s chairman Venugopal Dhoot declined to comment, saying he needs further clarity on the amendment. Videocon is being advised by consultancy firm KPMG on the sale.
The company’s diversification from a consumer electronics maker to a multi-business group centered on hydrocarbon exploration has put a heavy debt burden on its balance sheet. At the end of June, the group had a consolidated total debt (long-term and short- term borrowing) of R16,812.72 crore.
Videocon is the latest Indian firm to be to affected by changing policies in other countries. Earlier this year, Naveen-Jindal promoted Jindal Steel and Power dropped its $2.1-billion project in Bolivia after failing to receive assurances from the Bolivian government on adequate gas supply.
Airport developer, GMR Group was forced to vacate the Male airport after a new government in Maldives on November 27 cancelled the contract given to GMR-Malaysia Airports Holdings Berhad in 2010 by previous president Mohammed Nasheed.
Tata Power, which bought
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