Mumbai, March 6: The Videocon group has withdrawn from the race to acquire a stake in Punjab Communications Ltd (Puncom) from the state government.
Speaking to The Telegraph, Videocon group chairman Venugopal Dhoot said that the decision was taken after conducting due diligence where it was found that the acquisition would “not be suitable” for the group’s interests.
He added that most of the company’s profits came from investments and not operations. “When any private sector takes over a public sector undertaking, the private sector should exhibit strength in operations.” He, thus, indicated that such a feat would not have been possible in this case.
The final decision on the selloff of Punjab Communications is expected to be taken tomorrow. The Punjab government had earlier expressed its intention to offload around 70 per cent stake in the telecom company in a phased manner. It had shortlisted five firms and appointed SBI Capital Markets as its financial advisor to the disinvestment process.