SEOUL (Reuters) - Iranian appliance maker Entekhab Industrial Group has been named as the buyer for South Korea’s Daewoo Electronics in a deal reportedly worth more than $540 million, beating Swedish giant Electrolux.
Daewoo’s leading creditor Woori Bank said in a statement that creditors would sign a preliminary deal with Entekhab, aiming to close the final agreement by the end of July.
Daewoo said the Iranian company already sold Daewoo products in the Middle East.
Electrolux was named reserve bidder in case the deal with Entekhab falls through.
The financial terms of the deal were not disclosed, but local online news service eDaily said Entekhab offered slightly more than 600 billion won ($540 million).
It is the fourth attempt to sell Daewoo Electronics, once the flagship unit of the failed Daewoo Group and now almost wholly owned by its creditors.
In the previous rounds, creditors held a series of unsuccessful sales talks with Ripplewood Holdings, a private equity unit of Morgan Stanley, and a consortium of India’s Videocon Industries and RJH International.
During the period, Daewoo sold off non-core assets and unprofitable businesses to focus on washing machines and refrigerators.
Export-focused Daewoo competes with bigger local rivals Samsung Electronics, LG Electronics, and low-cost Chinese producers.
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