Seoul (South Korea): A consortium led by India's Videocon Industries Ltd has signed an initial contract to buy South Korean consumer electrical goods maker Daewoo Electronics Corp for about $700 million, Daewoo Electronics spokesman Kwon Dae-hoon said.
Kwon Dae-hoon made the announcement on Monday.
The announcement confirmed a statement made to Dow Jones Newswires by an official at Woori Bank, Daewoo's creditor bank, that the two sides signed an initial agreement last week and that a formal one would be signed in December after due diligence is conducted.
The Woori Bank official gave the price as $726 million.
Videocon, along with consortium partner RHJ International SA, a Belgium-based holding company of US equity fund Ripplewood Holdings LLC, emerged as the preferred buyer for Daewoo Electronics in September.
Daewoo Electronics, Korea's third-largest electronics goods maker by sales, has been under a creditor-led debt-restructuring program since 2000 after amassing huge debts.
Creditors, including Woori Bank and Korea Asset Management Corp., who collectively own 97.6 per cent of Daewoo, have been seeking to sell the controlling stake since November of 2005.
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