| MUMBAI:
A consortium led by India's largest electronics firm Videocon Industries Ltd have
signed a non-binding memorandum of understanding MoU to buy South Korea's Daewoo
Electronics Corp for $ 731 million. While Videocon will own
50.1% in the consortium, Brussels-headquartered private equity firm RHJ will own
49.9%. Woori Bank is acting as the principal bank of the creditor financial institutions
committee (CFIC) for Daewoo Electronics for the proposed purchase of the equity
and debt interest of the CFIC in the company. Seoul-based Woori Bank spokesman
Jung Hee Kyung has been quoted as saying that the purchase offer is an all cash
one. For Videocon, the Daewoo
acquisition comes with its 25 manufacturing facilities in South Korea, the US
and the UK, providing the Indian major with a global presence. Daewoo would not
only help Videocon move up the value chain in the colour TV business, but also
complement its previous acquisitions. In 2005, it had acquired the picture tube
business of France's Thomson for $291 million. Later, it also bought Electrolux
Kelvinator India for $76 million. Videocon Industries chairman & managing
director VN Dhoot has been quoted as saying that the company would be able to
leverage Daewoo's R&D centres in South Korea for TVs, washing machines and
refrigerators. | 
