New Delhi, June 28: The Videocon Group has sealed the acquisition of Thomson’s world-wide colour picture tube operations for Rs 1,280 crore (240 million euros) in an all-cash deal. Eagle Corporation Limited, an offshore entity of the Dhoots, closed the transaction.

France-based Thomson’s colour picture tube operations will be transferred to Videocon free of net cash or debt and the sale will be completed by the third quarter of 2005.

The acquisition follows Videocon’s January agreement to buy Thomson’s Italian picture tube factory. However, the Indian consumer electronics major is also acquiring Thomson’s colour picture tube manufacturing facilities in China, Poland and Mexico as well.

The Aurangabad-based business house plans to fund the acquisition on a stand-alone basis by tapping the domestic, international debt/equity markets.

“The French conglomerate has, in return, agreed to invest the same amount (Rs 1,280 crore) in two listed Videocon companies ? Rs 1,200 crore (225 million euros) in Videocon Industries, which is active in power generation, and Rs 80 crore (15 million euros) in Videocon International Ltd through a newly issued global depository receipts (GDRs),” said S. K. Shelgikar, an independent adviser to Videocon.

“Videocon Industries today concluded an offering of global depository receipts (GDRs) worth $75 million at a discounted price of $10 each,” he added.

“Thomson will hold about 14 per cent in each company," said Frank E Dangeard, chairman and CEO, Thomson.