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Iran Buys South Korea's Daewoo Electronics
An Iranian home appliance company tends to buy South Korea's Daewoo electronics, Yonhap News Agency reported on Tuesday
Creditors of South Korea's Daewoo Electronics Co. is about to ink a deal to sell the company to an Iranian home appliance maker, the report read.
Iran's Entekhab Industrial Group was picked as the preferred bidder by Daewoo's creditors, including Woori Bank.
The creditors are planning to dispose of their combined 97.5 percent stake in the electronics company, most of which they acquired as the result of a debt-equity swap while the company went through a debt restructuring program.
The final conclusion with Entekhab will be reached after they wrap up the negotiation process, Yonhap News Agency said, which will be as early as next week.
The sale price is to be estimated to lie within the range of 470 billion won (394.6 million U.S. dollars) to 520 billion won (436.6 million U.S. dollars), Yonhap said, citing market observers.
The price, however, is sharply lower than the original bid price presented by Entekhab, 605 billion won (508 million U.S. dollars), which nevertheless was accepted by the majority of creditors, the media report said.
Daewoo Electronics, a former subsidiary of the Daewoo Group which collapsed during the Asian financial crisis, was put under a debt workout program in January 2000.
Its workout program is to expire this month, as it was extended one year in March last year.
Creditors' previous attempts to sell the company in 2006 and 2008 went in vain due to disputes over the bidding price.
Sep 4, 2010 17:12
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