Videocon, Daewoo deal may be scrapped
The planned sale of Daewoo to Videocon is likely to fail due to differences in pricing.
By Agencies |
SEOUL: The planned sale of Daewoo Electronics Corp to a consortium led by Videocon Industries Ltd will likely fail due to differences in pricing, according to Korea Asset Management Corp, a main creditor of the South Korean company.
"We notified the other main creditor, Woori Bank, that we can't accept the prices suggested by Videocon last month,'' Kamco spokesman Woo Jong-chul said Wednesday.
That means the memorandum of understanding signed between the Videocon consortium and Woori Bank for the deal is likely to be scrapped, though but Kamco isn't ruling out the possibility of renegotiating with Videocon later, he said.
In October last year, the Videocon-led consortium agreed to buy 97.6 per cent of Daewoo for 700 billion won USD 749 million. But in early December, the Indian company demanded a 13 per cent discount on the agreed price.
Daewoo Electronics, South Korea's third-largest electronics goods maker by sales, has been under a creditor-led debt-rescheduling program since 2000 after amassing huge debts.
Creditors, including Woori Bank and Korea Asset Management Corp, who collectively own 97.6 per cent of Daewoo, have been seeking to sell the controlling stake since November 2005.
"We notified the other main creditor, Woori Bank, that we can't accept the prices suggested by Videocon last month,'' Kamco spokesman Woo Jong-chul said Wednesday.
That means the memorandum of understanding signed between the Videocon consortium and Woori Bank for the deal is likely to be scrapped, though but Kamco isn't ruling out the possibility of renegotiating with Videocon later, he said.
In October last year, the Videocon-led consortium agreed to buy 97.6 per cent of Daewoo for 700 billion won USD 749 million. But in early December, the Indian company demanded a 13 per cent discount on the agreed price.
Daewoo Electronics, South Korea's third-largest electronics goods maker by sales, has been under a creditor-led debt-rescheduling program since 2000 after amassing huge debts.
Creditors, including Woori Bank and Korea Asset Management Corp, who collectively own 97.6 per cent of Daewoo, have been seeking to sell the controlling stake since November 2005.
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