Daewoo Elec to pick buyers for TV, non-core units

SEOUL, April 15 (Reuters) - South Korea's Daewoo Electronics
Corp is set to pick potential buyers for its non-core businesses,
including TV manufacturing, by next week as it restructures to
focus on appliances, its chief executive said on Wednesday.
Daewoo Electronics, once a flagship of the failed Daewoo
Group but now owned by creditors, has put up unprofitable
business units for sale after three failed attempts to sell the
entire company.
The TV, air conditioner, vacuum cleaner and electronics parts
businesses are on the sales block, to be purchased separately or
in a package.
"There are several interested parties for each business we
are selling," CEO Lee Sung told reporters at a news conference.
"We plan to name primary bidders by April 22."
Lee did not identify any potential bidders but said those who
submitted letters of intent include one foreign investor.
In earlier attempts to sell Daewoo, creditors mostly held
talks with foreign companies. Ripplewood Holdings was the latest
contender but talks with the U.S. private equity firm collapsed
in January in the aftermath of the global financial crisis.
Prior to that, creditors also held failed negotiations with a
consortium of India's Videocon Industries and RHJ
International , the holding company for Ripplewood, as
well as a private equity unit of Morgan Stanley .
Lee said Daewoo would focus on its mainstay appliance
products including refrigerators, washing machines and microwave
ovens, which are expected to post 1.2 trillion won ($896.5
million) in sales and about 30 billion won in operating profit
this year.
In 2008, Daewoo posted 3.2 billion won in operating profit on
1.9 trillion won in sales. Its TV business alone saw more than 40
billion won in operating loss last year.
Lee said the sale process for the restructured Daewoo
Electronics could resume once the company fully turns around and
improves cash flow. He did not elaborate.
Unlisted Daewoo was placed under a debt rescheduling
programme after its parent group went bankrupt in 1999. The
company, which competes with low-priced Chinese producers and
bigger local brands Samsung Electronics <005930.KS> and LG
Electronics <066570.KS>, generates more than 80 percent of its
sales abroad.
($1=1338.5 Won)
(Reporting by Rhee So-eui; Editing by Marie-France Han and
Jacqueline Wong)
((soeui.rhee@thomsonreuters.com; +82 2 3704 5650; Reuters
Messaging: soeui.rhee.reuters.com@reuters.net))
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Keywords: DAEWOOELEC/SALE

Keywords: DAEWOOELEC/SALE =2

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