SEOUL Dec 24 Creditors of South Korea's Daewoo
Electronics have chosen five candidates including Electrolux
(ELUXb.ST) and Ripplewood to buy the appliance maker in a
preliminary bidding, a local media report said on Thursday.
It is the fourth attempt to sell creditors-owned Daewoo
Electronics, once a flagship of the failed Daewoo Group.
MoneyToday said that Daewoo's creditors shortlisted five
viable candidates among those who submitted letters of intent
-- Sweden's appliance giant Electrolux, U.S. private equity
firm Ripplewood Holdings, South Korean cooking appliance maker
Tong Yang Magic 023020.KQ, a Middle East firm and an
appliance player in Mexico.
An official at Daewoo's leading creditor Woori Bank
confirmed creditors had received multiple letters of intent but
declined to identify any preliminary bidder. The final bidding
will take place in March, MoneyToday said, citing industry
After earlier sale attempts had failed, Daewoo Electronics
sold off its non-core businesses to focus on its profitable
washing machines and refrigerators businesses.
In the previous rounds, Ripplewood was the latest contender
but talks with the U.S. 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 (VEDI.BO) and RHJ
International RHJI.BR, the holding company for Ripplewood, as
well as a private equity unit of Morgan Stanley (MS.N).
Unlisted Daewoo was placed under a debt rescheduling
programme after its parent group went bankrupt in 1999. It
competes with bigger local rivals Samsung Electronics
(005930.KS) and LG Electronics (066570.KS) as well as
low-priced Chinese producers, and generates more than 80
percent of its sales abroad.
(Reporting by Rhee So-eui; Editing by Valerie Lee)