Reuters: Deals: Fresh attempt to kickstart South Korea's Daewoo Electronics sale: source

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Fresh attempt to kickstart South Korea's Daewoo Electronics sale: source Mar 13th 2012, 06:50 SEOUL | Tue Mar 13, 2012 2:50am EDT SEOUL (Reuters) - Shareholders of Daewoo Electronics plan to relaunch the stalled sale of the South Korean home appliance maker in April, an official at one of the shareholding companies said on Tuesday. The move comes after their separate attempts last year to sell the unlisted firm to Iran's Entekhab Industrial Group for $513 million and to Sweden's Electrolux (ELUXb.ST) fizzled out. Those attempts followed earlier unsuccessful ones in previous years. "We are in the process of due-diligence. We will restart the sale of Daewoo Electronics next month after consultations," the official, who has direct knowledge of the deal, told Reuters on condition of anonymity because of the sensitivity of the issue. State-run Korea Asset Management Corp (KAMCO) currently holds a 57.4 percent stake in Daewoo, while Korea Exchange Bank (004940.KS) owns 6.8 percent, according to Daewoo's latest regulatory filing. Daewoo Electronics has drawn little interest among Korean companies, with its product line-up of refrigerators, washers and televisions not seen as competitive against low-priced Chinese producers and bigger local rivals such as Samsung Electronics (005930.KS) and LG Electronics (066570.KS). Since 2006, a series of talks to sell Daewoo, including with a private equity unit of Morgan Stanley (MS.N), Ripplewood Holdings and a consortium of India's Videocon Industries (VEDI.NS) and RJH International (RHJI.BR), fell apart. Daewoo was placed under a debt-restructuring programme after its parent group went bankrupt in 1999. It posted a consolidated net profit of 3.1 billion won ($2.76 million) in the first five months of 2011, versus a net loss of 64.6 billion won in 2010, according to the latest regulatory filing. (Reporting by Ju-min Park and Hyunjoo Jin; Editing by Muralikumar Anantharaman) Link this Share this Digg this Email Reprints

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