Iranian firm to buy Daewoo Electronics

The South Korean company’s creditors including Woori Bank, chose in April Iran’s Entekhab Industrial Group as the preferred bidder for their 97.5 percent stake in Daewoo Electronics, Yonhap news agency quoted financial sources as saying on Tuesday.

The final decision will be reached after the creditors end negotiations with Entekhab on the sale price during a meeting to be held next week.

The sale price is estimated to be at a range of 470 billion won ($395.7 million) to 520 billion won which is considerably lower than the 605 billion won (508 million U.S. dollars) Entekhab had originally offered to pay.

“Majority creditors are expected to agree on the sale plan even though the sale price is lower than before,” a creditor bank official said. “The sale of Daewoo Electronics sale has been delayed so long and there is no guarantee that we can receive higher prices from other prospective buyers.”

Daewoo Electronics, a former subsidiary of the Daewoo Group which collapsed during the Asian financial crisis, was put under a debt workout program in January 2000.

Creditors’ previous attempts to sell the company in 2006 and 2008 went in vain due to disputes over the bidding price.

A person familiar with the situation said in July that Entekhab sought to lower its initial bid price after identifying losses in Daewoo’s books.

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