News & Analysis

Ripplewood and Videocon to acquire Daewoo Electronics

Ripplewood Holdings, a US private equity firm, and Videoncon Industries, an Indian strategic partner, have won the race to acquire Korea’s Daewoo Electronics in a transaction worth a reported $700 million.

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A partnership comprising Ripplewood Holdings, a US buyout firm, and Videocon Industries, a large India consumer electronics company, have been picked as the preferred bidder to take over Korea’s Daewoo Electronics.

The consortium beat two others: MBK Partners, a North Asia-focused fund manager established by former Carlyle executives and a Malaysian investment company, to acquire Daewoo Electronics, according to media reports.

Creditors of Daewoo Electronics picked Videoncon and RHJ International, the Belgium-listed Ripplewood holding company, to buy over their combined 97.5 percent stake, according to Korean dailies.

“Videoncon can become the new owner of Daewoo as early as December after two months of due diligence, Park Ki-hoon of Woori Bank, Daewoo’s principal creditor, said in The Korea Times.

Daewoo operates six plants in South Korea and 18 overseas units in Mexico, Poland, Vietnam and China. Korea’s third largest consumer electrical maker was formerly a unit of Daewoo Group, which collapsed in 1999 under the debts amounting to $80 billion.

In Asia, Ripplewood has been most active in Japan. Recently, Asahi Tec Corporation, Japanese listed chassis and power-train component maker controlled by RHJ International, said it is acquiring Metaldyne Corp, a US auto parts maker for $1.2 billion.