Videocon close to acquiring Daewoo's consumer goods biz

MUMBAI: Indian electronics and home appliances maker Videocon is understood to have emerged as the front-runner for acquiring South Korean consumer goods giant Daewoo Electronics with a bid of USD 650 million (nearly Rs Rs 2,990 crore).

Four potential buyers, including Videocon, had recently submitted their final bids for Daewoo Electronics that was put on the block by its lenders.

The Indian firm's bid is believed to be the highest, sources familiar with the development said, but Videocon Chairman Venugopal N Dhoot declined to comment.

"This is not the time to comment," Dhoot told PTI here.

Others who are in the race for Daewoo's consumer goods business are Haier, LG Electronics and Whirlpool PLC.

Daewoo had announced earlier this year that it would be selling its consumer electronics division and invited bids.

The company with six plants in South Korea and 18 in other parts of the world, is controlled by Korean Asset Control Management Corporation and Woorie Bank, which own 97 per cent stake in the business.

Investment bankers have valued the company between USD 500-600 million.

Earlier this year, Videocon had acquired colour picture tube business of French giant Thompson SA for Euro 240 million, strengthening its global presence in the fast growing electronics and consumer durable business.