Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

Entekhab Can't Come Up with Cash to Buy Daewoo; Is Electrolux Still Interested?
Jun 1, 2011
 Printable format
 Email this Article
 Search

Iran's Entekhab Group won the bidding war for the purchase of Korean appliance maker Daewoo Electronics, but failed to come up with the funding - or even a satisfactory plan for how it intended to get the funding – prompting Daewoo shareholders to cancel the deal altogether. Daewoo shareholders are expected to restart talks with Electrolux, which was runner-up in the 2010 bidding.

Appliance OEM Daewoo Electronics Corp. was once a part of South Korea's Daewoo Group, which went bankrupt in 1999. Daewoo Electronics has been owned by former creditors ever since. After several failed attempts to sell off the company, Sweden's Electrolux and Iran's Entekhab were selected as the preferred bidders for Daewoo in March 2010. In August 2010 Entekhab was named the winning bidder, reportedly agreeing to pay $518 million.

In November of 2010, personnel from Entekhab were posting to web site directory listings that they had begun the process of bringing Daewoo into the Entekhab corporate structure.

But Entekhab did not, in fact, have financing in place to make the purchase and couldn't generate sufficient interest from Iranian or international investors. When it failed to have funding in place by the early February 2011 deadline, Daewoo's owners extended the deadline for two months. When the April 7 deadline arrived, Entekhab still did not have the means to pay for the acquisition and, according to a Reuters source, even asked Daewoo shareholders to cut their price by about $55 million.

This week Daewoo shareholders finally decided to drop the deal with Entekhab.

If the deal had gone through it would have turned Entekhab from a regional Mid East appliance industry player into an appliance maker with global reach.

Electrolux CEO Keith McLoughlin told Bloomberg in February that Electrolux was still interested in talking with Daewoo creditors if the Entekhab deal fell through. Electrolux is also working out the details of the acquisition of Egyptian appliance maker Olympic.

Back to Daily News

 

Daily News

...........................................................

Nov 24, 2014: Husqvarna named exclusive chainsaw provider for Asplundh

Nov 24, 2014: LG garners Innovation Award for Home Appliances

Nov 24, 2014: Survey: 10% of consumers plan big-ticket appliance purchases in the coming year

Nov 24, 2014: 2014 Green Building Standard available from ASHRAE

Nov 24, 2014: Smeg enters small appliance market in the United States

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

November 2014: U.S. Appliance Industry: Market Value, Life Expectancy & Replacement Picture 2014
October 2014: Portrait of the European Appliance Industry
September 2014: Appliance Industry Focus: HVAC
June 2014: Appliance Magazine Market Insight: April 2014




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows