New Delhi: With creditors to Daewoo Electronics rejecting a fresh offer that reduced the transaction size by 10 per cent, Videocon-led consortium's much-hyped $730 million deal to acquire the ailing Korean firm has fallen apart.
Daewoo’s largest creditor Woori Bank has said the bank along with other creditors have decided to abandon the plan to sell the company to Videocon-led consortium due to differences over pricing, according to Xinhua Finance news agency.
"We creditors have found that the revised offer by Videocon is still unacceptable and thus we are in the process of notifying the Indian company that the memorandum of understanding signed earlier is dropped and they lost their status as preferred bidder," as quoted by PTI, the Woori Bank spokesperson said in Seoul.
The consortium comprising India's Videocon and US equity firm Ripplewood had initially asked for a 13 per cent cut in the deal value after conducting due diligence, and later revised it to 10 per cent after strong opposition from the 40-odd creditors to Daewoo Electronics.
The official said the process of selling Daewoo would start afresh, although the creditors have left open the possibility of more talks with Videocon.
Officials of Videocon declined to comment but sources said the company is expected to take part in the fresh bids.
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