Reuters have reported this morning that in a surprise move that South Korean conglomerate Dongbu Group was picked as the preferred bidder to buy home appliance maker Daewoo Electronics
Group affiliate Dongbu CNI Co said that it was a done deal in a regulatory filing today.
Dongbu beat bids by Electrolux and the South Korean SM Group. Dongbu submitted the highest bid at about 370 billion Korean won ($205 million), a source with direct knowledge of the matter told Reuters. Which is some £33 million more than the reported bid for the appliance manufacturer had from Electrolux w.ho reportedly had Daewoo firmly in its sights as an acquisition
Dongbu teamed up with private equity funds KTB and CXC to finance the acquisition, a Dongbu Group official said, adding Dongbu is expected to contribute about half the cost of acquisition while the financial investors contribute the rest.
The semiconductor-to-finance Dongbu Group said it expects to benefit from Daewoo’s home appliance business and the group’s existing operations in semiconductors, light-emitting diodes and robots.
If you’ve never heard of the Dongbu Group, don’t worry, neither had we!
As to what the future holds for Daewoo, at this point there is no indication of what Dongbu intend for the Daewoo business.
