US private equity firm Ripplewood Holdings and an undisclosed Russian investor have submitted separate bids to acquire Korean home appliance maker Daewoo Electronics, a spokesman from Woori Bank, Daewoo's main creditor, told Reuters.
Woori did not respond to a request for comment at press time.
The Ripplewood bid comes tow months after Morgan Stanley Private Equity pulled out of a deal to acquire the company for undisclosed reasons. Local media, however, speculated the deal fell apart because Daewoo Electronics’ labour union had demanded three years’ job security.
The is now the third time the company’s creditors have initiated the sale of the company, once a part of the Korean conglomerate Daewoo Group, which went bankrupt and collapsed in 1999 after the Asian financial crisis.
In late 2006, a partnership comprising Ripplewood's holding company RHJ International and Indian electronics-maker Videocon Industries had been selected to purchase Daewoo Electronics, but that deal failed to progress over disagreements in price. That deal was estimated to be in the range of $740 million.
Daewoo Electronics’ primary products include televisions and refrigerators. It is Korea’s third largest consumer electronics manufacturer.