The ongoing sale of Daewoo Electronics to Entekhab Industrial may be delayed due to the latter’s financing problems, reported the Maeil Business.
The report cited industry sources as saying the Iran-based electronic appliance maker provisionally agreed with the creditors of Daewoo on a KRW 470bn (USD 398m) price tag to buy the South Korean peer.
According to the report, Entekhab is planning to borrow KRW 360bn from South Korean financial institutions to finance the potential acquisition and use internal cash of KRW 110bn. However, South Korean financial firms have not determined whether to participate as financial investors in the acquisition.
The report suggested that this may delay Entekhab’s signing on the final agreement which was initially scheduled for 13 September.
As reported, Woori Bank and other creditors selected Entekhab Industrial Group, the Iran-based electronic appliance maker, as the preferred bidder in the sale of Daewoo.
Source: Maeil Business
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