Initial deal signed to sell Daewoo Electronics to India's VideoCon

0 Comments | AFP, October, 2006

SEOUL (AFP) — Creditors of South Korea's Daewoo Electronics have signed an initial deal to sell the country's third-largest electronics maker to a consortium led by VideoCon Industries of India, officials said. The memorandum of understanding signed on Friday calls for the consortium to buy the electronics firm for 700 billion won (730 million dollars).

The acquisition price is subject to change after a month-long review, the creditors -- including Korea Asset Management Corporation and Woori Bank -- were quoted by Yonhap news agency as saying. The consortium is made up of Indian consumer electronics manufacturer VideoCon and Ripplewood Holdings, a US private equity fund. It was picked as preferred bidder for the Korean company in early September. Daewoo Electronics is a...