[Photo by Dongbu Daewoo Electronics Corp.]
Dongbu Daewoo Electronics Corp., a distant third South Korean home appliances maker, could go under Dayou Group that owns a smaller kitchen appliances company Dayou Winia known for the country’s first Dimchae kimchi refrigerator brand.
Dayou Winia in a regulatory filing Friday said Dayou Holdings, not itself, was involved in negotiations with financial investors of Dongbu Daewoo Electronics who turned to their second choice Dayou Group after talks with preferred bidder - Iran`s Entekhab Industrial Group and Korean private equity fund Whale Investment - fell through due to a difference over price.
The majority stake in Dongbu Daewoo Electronics has been put up for sale by financial investors after they were unsatisfied with their strategic partner Dongbu Group that failed to meet its part of obligation to strengthen the electronics maker when they jointly took over government stake in formerly Daewoo Electronics in 2013.
Market watchers believe a stock purchase agreement could be signed as early as Friday and predict the smaller Winia and Dimchae brand go under Daewoo Electronics that has a sizable share in emerging economies with Klasse label.
Shares of Dayou Winia closed Friday 2.9 percent down at 3,335 won ($3.06).
Winia formerly owned by Mando Industries was sold to its automotive parts rival Dayou in 2014. A merger could scale up the capacity and share in the home appliance market dominated by two bigger names Samsung and LG. Dongbu Daewoo gets 80 percent of its revenue from overseas markets.
By Chun Gyung-woon and Cho Jeehyun
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]