Business
Videocon inks deal to acquire Daewoo http://www.ndtvprofit.com/homepage/storybusinessnew.asp?template=&whichstory=n&id=34230
Monday, October 23, 2006 (Seoul):
India's largest electronics firm Videocon said a consortium led by it has reached an agreement to acquire South Korea's debt-burdened Daewoo Electronics for $700 million (Rs 3,150 crore).
The agreement was signed on October 20 by a consortium led by Videocon and creditors of the troubled South Korean firm, which was earlier part of the Daewoo Group.
Videocon and US-based equity fund Ripplewood had jointly bid for Daewoo Electronics, after it was put on the block by its lenders.
"The consortium was selected as an exclusive negotiation partner based on various factors including financial capacity, complementarity of businesses, track record in various acquisitions including commitment toward ongoing investments," Creditor Financial Institutions Committee for Daewoo Electronics said.
The deal will mark Videocon's third purchase in the last one year after Thompson's global picture tube business for around Rs 1,260 crore and loss making Indian subsidiary of AB Electrolux, Sweden.
Videocon had taken over Electrolux Kelvinator India in a cashless transaction, wherein AB Electrolux agreed to subscribe to Videocon's GDR worth about Rs 406 crore as part of the deal. (PTI)