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December 20, 2007 |
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DAEWOO ELECTRONICS: Attracts 10 Foreign Bidders for Stake Sale Over 10 foreign companies are jockeying for position in their attempt to acquire Daewoo Electronics Corporation, The Donga-A News reports. Woori Investment and Securities and Samil Pricewaterhouse Coopers, the report relates, reported that after registering a letter of intent, 10 companies expressed their interest in acquiring Daewoo. As reported by the Troubled Company Reporter-Asia Pacific on Nov. 28, 2007, Daewoo Electronics is put up for sale a second time as the US$746-million Videocon-Ripplewood bid fails. Videocon and bid partner Ripplewood Holdings, LLC, the TCR-AP recounted, submitted the winning bid for a controlling stake in Daewoo. The deal started to hit obstacles after the buyers completed due diligence, the report said. Expectations were out of line with what the asset was worth and creditors were not prepared to make the significant concessions necessary to progress discussions, the report points out, the report noted. According to The Donga-A, the only Korean company that expressed interest in acquiring Daewoo was MBK Partners, but it did not participate in the initial period, and the only companies that registered LOIs were foreign companies. Creditors, The Donga-A relates, will examine submitted LOIs and screen qualified companies before this week is up. Some five weeks after the preliminary inspections, the most eligible companies will be short-listed, the report adds. About Daewoo Electronics Headquartered in Chung-Gu, Seoul, Daewoo Electronics Corporation -- http://www.dwe.co.kr/ -- is the third largest Korean consumer electronics company. It manufactures and sells a variety of products including televisions, DVD players, refrigerators, air conditioners, washing machines, microwaves, vacuum cleaners and car audio systems in over 105 countries. According to the Troubled Company Reporter-Asia Pacific, Daewoo Electronics has been under a debt workout program since January 2000, months after its parent group -- the Daewoo Group -- collapsed under debts of nearly US$80 billion in 1999. Daewoo Electronics Corp. posted a KRW94-billion loss in 2005 after sales declined 6.4%. The net loss compares with the KRW30-billion profit the company posted in 2004. Sales fell to KRW2.2 trillion from KRW2.3 trillion in 2004. The TCR-AP reported on Nov. 14, 2005, that creditors of Daewoo Electronics placed the firm for sale for US$1 billion. ABN Amro, PricewaterhouseCoopers and Woori Bank were appointed to find a buyer for the business. In September 2006, the consortium led by Videocon Industries submitted a bid for a controlling stake in Daewoo. |
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