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‘Dayou takes over preferred bidder status for Dongbu Daewoo from Entethab’
Posted on Friday, 09 February 2018 12:17
Dayou Group is diversifying its business structure and export market after reportedly beating off competition to acquire South Korea’s third-largest electronics maker, Dongbu Daewoo Electronics.
According to the media, the owner of Dayou Winia, the local manufacturer best known for its kimchi refrigerators, will buy the company from DB Group and other financial investors.
The deal is reportedly valued between KRW 160.00 billion to KRW 190.00 billion (USD 146.53 million and USD 174.01 billion).
It represents a strategic stepping stone into the overseas market Dayou Winia, which also produces air conditioners, electric rice cookers, and air cleaners, and has a dominant share of the domestic sector.
Dongbu Daewoo, by contrast, operates production plants in Mexico, China and Malaysia and roughly 80.0 per cent of its sales are made from exports to emerging economies across South America and Southeast Asia.
However, Dayou was not first in the running for the unlisted home appliance maker that is third in its home market, after Samsung and LG, and which attracted a crowd of interested overseas buyers during the sale process.
According to reports, Iran’s Entekhab Industrial, in conjunction with South Korean private equity fund Whale Investment, was chosen as the preferred bidder over the likes of China’s Haier, Electrolux of Sweden and Brandt of France.
However, the shareholders turned to the next in the running, Dayou, after failing to reach an agreement with this consortium on a price.
It is believed the value fell short of the KRW 135.60 billion that KTB Private Equity and other backers injected into Dongbu Daewoo, then known as Daewoo Electronics, in 2013.
Pulse by Maeil Business News added the financial investors put their stocks on the block after DB Group failed to meet its obligation of strengthening the manufacturer following the purchase of the government’s stake five years ago.
© Zephus Ltd