News: Videocon, two funds for Daewoo Elec bid
(RTR 02/09/2006) Seoul - Videocon Industries Ltd., a Malaysian investment fund and a South Korean fund are the front-runners in the bidding for South Korea's Daewoo Electronics, a creditor source of the home appliance maker said on Friday.
Daewoo Electronics, which makes televisions, refrigerators and air conditioners, drew five bidders in August after its domestic creditors put their combined 97 per cent stake of the unlisted firm up for sale.
Local media estimated the deal could be worth up to $1 billion, or below its 2005 asset value of 1.65 trillion won ($1.72 billion).
"It was narrowed to the three," the source said by telephone, confirming the Chosun Ilbo newspaper's report that Videocon, a Malaysian fund and South Korean private equity fund MBK Partners were among the strongest candidates to buy the former unit of the bankrupt Daewoo Group.
He said he didn't know the English name of the Malaysian fund.
Another creditor source said it needed more time to examine acquisition proposals from the five bidders, so a preferred buyer could be announced after late next week.
The two sources declined to be identified or reveal which bidder offered the highest price.
The local newspaper quoted an unnamed creditor source as saying that the Malaysian fund had offered the highest price among other bidding firms and was most likely to be picked as a preferred buyer.
Daewoo Electronics is one of major companies spun off from the Daewoo Group that was bailed out by creditors, after the parent group collapsed in 1999.
Other former Daewoo units to be sold by creditors include Daewoo Shipbuilding and Marine Engineering Co. Ltd. and energy developer Daewoo International.
Former affiliates already sold include Daewoo Engineering and Construction Co. Ltd. in June and the former Daewoo Heavy & Machinery Co., now Doosan Infracore, in 2005.
For Videocon, which makes televisions, picture tubes and home appliances, an acquisition of the South Korean rival would be its third major acquisition in less than two years.
Daewoo Electronics, which makes televisions, refrigerators and air conditioners, drew five bidders in August after its domestic creditors put their combined 97 per cent stake of the unlisted firm up for sale.
Local media estimated the deal could be worth up to $1 billion, or below its 2005 asset value of 1.65 trillion won ($1.72 billion).
"It was narrowed to the three," the source said by telephone, confirming the Chosun Ilbo newspaper's report that Videocon, a Malaysian fund and South Korean private equity fund MBK Partners were among the strongest candidates to buy the former unit of the bankrupt Daewoo Group.
He said he didn't know the English name of the Malaysian fund.
Another creditor source said it needed more time to examine acquisition proposals from the five bidders, so a preferred buyer could be announced after late next week.
The two sources declined to be identified or reveal which bidder offered the highest price.
The local newspaper quoted an unnamed creditor source as saying that the Malaysian fund had offered the highest price among other bidding firms and was most likely to be picked as a preferred buyer.
Daewoo Electronics is one of major companies spun off from the Daewoo Group that was bailed out by creditors, after the parent group collapsed in 1999.
Other former Daewoo units to be sold by creditors include Daewoo Shipbuilding and Marine Engineering Co. Ltd. and energy developer Daewoo International.
Former affiliates already sold include Daewoo Engineering and Construction Co. Ltd. in June and the former Daewoo Heavy & Machinery Co., now Doosan Infracore, in 2005.
For Videocon, which makes televisions, picture tubes and home appliances, an acquisition of the South Korean rival would be its third major acquisition in less than two years.
posted by InCar Group Press Room at 15:48
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