] French home appliance maker Brandt Group has become the latest bidder for acquiring Dongbu Daewoo Electronics that is already crowded with multiple players, including Sweden’s Electrolux, China’s Haier and Mexico’s Mabe, according to news reports on Sept. 25.
The Korean appliance maker is drawing much attention from overseas bidders as it operates in 40 countries globally. Its strong presence in Latin America, including a production plant in Mexico, has made the firm extremely appealing.
Financial investors, including KTB Private Equity, owns a combined 45.8 percent stake in the firm, while the parent Dongbu Group owns the rest.
Dongbu attracted about 135 billion won from the investors when it acquired the firm in 2013. At the time, the investors included a drag-along right in the contract that can be triggered once the company fails to maintain a net asset value of more than 180 billion won within the three years period and an IPO by 2018.
NH Investment & Securities, the deal manager, plans to short list potential buyers as soon as the preliminary bidding is completed this week.
Industry watchers say the firm’s sale has been accelerated after the resignation of Dongbu Chairman Kim Jun-ki on sexual harassment allegations and the financial investors’ looming decision to exercise their right to sell.
By Alex Lee (email@example.com