Morgan Stanley unit top bidder for Daewoo Electronics
A unit of US investment bank Morgan Stanley was named as a top bidder to buy South Korean appliance and television maker Daewoo Electronics.
By Agencies |
SEOUL:A unit of US investment bank Morgan Stanley was named as a top bidder to buySouth Korean appliance and television maker Daewoo Electronics, a leadingcreditor for Daewoo said on Friday.
Daewoo, a former unit of thefailed Daewoo Group, was put up for sale for a second time after creditors lastyear scrapped a proposed $746 million sale to a foreign consortium. Talks with aconsortium of India's Videocon Industries Ltd and RHJ International, the holdingcompany of US buyout fund Ripplewood, fell through due to a price disagreement.
Woori Bank, a leading Daewoocreditor, said Morgan Stanley PE got the highest score among bidders in the newsale round, launched in November. Woori did not give a bid price or identifyother contenders. Local media reported previously that those who submitted finalbids were all foreign financial investors, and included Ripplewood this timebidding on its own.
Creditorsare expected to sign a final contract with Morgan Stanley PE by end-May, WooriBank said in a statement. Unlisted Daewoo was placed under a debt reschedulingprogramme after its parent group went bankrupt in 1999. After restructuring, thecompany now focuses on TVs, air conditioning units and refrigerators.
The company had drawn littleinterest among Korean companies as it competes with low-priced Chinese producersand bigger domestic brands Samsung Electronics Co Ltd <005930.KS> and LGElectronics Inc. One of its latest purchases was a $1 billion deal to buy aSeoul office building from Daewoo Engineering and Construction Co.
Daewoo, a former unit of thefailed Daewoo Group, was put up for sale for a second time after creditors lastyear scrapped a proposed $746 million sale to a foreign consortium. Talks with aconsortium of India's Videocon Industries Ltd and RHJ International, the holdingcompany of US buyout fund Ripplewood, fell through due to a price disagreement.
Woori Bank, a leading Daewoocreditor, said Morgan Stanley PE got the highest score among bidders in the newsale round, launched in November. Woori did not give a bid price or identifyother contenders. Local media reported previously that those who submitted finalbids were all foreign financial investors, and included Ripplewood this timebidding on its own.
Creditorsare expected to sign a final contract with Morgan Stanley PE by end-May, WooriBank said in a statement. Unlisted Daewoo was placed under a debt reschedulingprogramme after its parent group went bankrupt in 1999. After restructuring, thecompany now focuses on TVs, air conditioning units and refrigerators.
The company had drawn littleinterest among Korean companies as it competes with low-priced Chinese producersand bigger domestic brands Samsung Electronics Co Ltd <005930.KS> and LGElectronics Inc. One of its latest purchases was a $1 billion deal to buy aSeoul office building from Daewoo Engineering and Construction Co.
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