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Iran's Entekhab to buy Daewoo Elec for $513 mln

SEOUL, Oct 20 (Reuters) - Unlisted Iranian appliance maker Entekhab Industrial Group will sign a deal soon to buy South Korea’s Daewoo Electronics for about 577.8 billion won ($513 million), Daewoo’s leading creditor said on Wednesday.

Woori Bank, which represents creditors-turned-shareholders of the unlisted Korean firm, said they will sign an official contract with Entekhab as soon as possible after receiving letters of endorsements from creditors by early next week.

The Iranian company had trumped Swedish electronics firm Electrolux ELUXb.ST earlier this year and was named as a preferred bidder for Daewoo, once the flagship unit of the failed Daewoo Group and now almost wholly owned by its 39 creditors. [ID:nTOE63D07F]

It is the fourth attempt for the creditors to sell Daewoo, which focuses primarily on washing machines and refrigerators.

In the previous bidding rounds, a series of sales talks fell through with Ripplewood Holdings, a private equity unit of Morgan Stanley MS.N, and a consortium of India's Videocon Industries VEDI.BO and RJH International RHJI.BR.

Export-focused Daewoo competes with bigger local rival Samsung Electronics 005930.KS and LG Electronics 066570.KS and low-cost Chinese producers.

($1=1126.7 Won)

Reporting by Ju-min Park; Editing by Ken Wills

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