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February 28, 2008 |
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DAEWOO ELECTRONIC: Establishes New Joint Venture Company Daewoo Electronic Components Co. Ltd. has established a joint venture company with a Korea-based company on February 18, 2008, Reuters Investing Keys reports. According to the report, the new entity, capitalized at KRW500 million, is mainly engaged in the sale of electronic and automobile parts. Daewoo Electronic, the report notes, holds a 40% stake in the JV company while the remaining 60% stake is held by the Korea-based entity. The report, however, did not say who's Daewoo's partner in the unnamed joint venture. 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 at 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. As reported in 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. Morgan Stanley's private equity unit has emerged as the preferred bidder to acquire Daewoo Electronics. |
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