S.Korea's Daewoo Electronics put up for sale again
SEOUL, Nov 22 (Reuters) - Creditors of South Korea's Daewoo Electronics are putting the company up for sale again, after talks with an Indian-led consortium on a proposed deal worth $746 million failed earlier this year due to a price disagreement.
The creditors will accept bids for the home appliances and television making arm of the defunct Daewoo Group from Nov. 26-Dec. 17, and preferred bidders would be picked in January, a Daewoo spokesman said on Thursday, confirming media reports.
Woori Investment & Securities Co. (005940.KS) and Samil PricewaterhouseCoopers are managing the sale.
The creditors had scrapped a plan in February to sell the company after failing to close a deal with a consortium comprising India's Videocon Industries Ltd. (VEDI.BO) and RHJ International (RHJI.BR), the holding company of U.S. buyout fund Ripplewood.
"There are five or six overseas electronics companies and a Russia bank-led consortium that have shown interest in the deal," a source close to Woori said, declining to be identified.
"In the previous case, there was a general consensus that most of the payment would be used for restructuring, hence the relatively low bidding price," the Woori source said.
"The value of the company has gone up since then, thanks to restructuring and workforce reductions."
Domestic creditors own 97.5 percent of unlisted Daewoo Electronics, which was placed under a debt rescheduling programme after its parent group went bankrupt in 1999. (Reporting by Koo Mee-hyoe; Editing by Marie-France Han and Sei Chong)
