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Report: Electrolux Loses Bid for Daewoo Electronics to Iran's Entekhab Oct 7, 2010 |
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Woori Bank named Iranian appliance maker Entekhab Industrial Group as the top bidder for Daewoo Electronics Corp. according to a Yonhap News Agency report.
If the sales takes place as reported, it leaves reported Daewoo bidder Electrolux empty-handed, and transforms Entekhab from regional Mid East player to global appliance giant.
Daewoo is considered to be the third largest South Korean electronics/appliance firm (after LG and Samsung). It now focuses on microwave ovens, washing machines, and refrigerators, after selling off four divisions making air-conditioners, floor care appliances, motors, and TVs in 2009.
It had been reported in March by Woori Bank – one of several creditors with ownership in Daewoo – that Electrolux and Entekhab had been selected as the preferred bidders for Daewoo.
Despite decreased revenue in 2009, Daewoo reported an operating profit for the year of US$43 million, which it credited to focusing on profitable businesses. Revenues in 2009 were approximately US $1 billion.
Daewoo Electronics Corp. was once a part of South Korea's massive Daewoo Group, which went bankrupt in 1999, putting ownership of Daewoo Electronics in the hands of several creditors.