A consortium led by India's Videocon Industries and the U.S. fund Ripplewood Holdings was selected as the primary bidder to buy Daewoo Electronics. If successful, it will be the largest foreign capital take over of a Korean manufacturing firm since Shanghai Auto's acquisition of Ssangyong Motor in 2004.
According to a Korea Times report, Videocon can become the new owner of Daewoo as early as December after 2 months of due diligence, said Park Ki-hoon of Woori Bank, one of Daewoo's main creditors. Korean equity firm MBK Partners was named as the reserve bidder.
Daewoo Electronics is a former unit of the Daewoo Group, which collapsed in 1999 under debts totaling U.S. $80 billion. It is now the third-largest maker of consumer electronics in South Korea after Samsung Electronics and LG Electronics.
The creditors said it had no choice but to pick a foreign firm as the preferred bidder, despite concerns of technology leaks.
Daewoo operates six plants in South Korea and 18 overseas units, including manufacturing facilities in Mexico, Poland, Vietnam and China. Its assets totaled 1.65 trillion won at the end of last year.
to Daily News