[THE INVESTOR] Dayou Group has completed the acquisition of Daewoo Electronics and has begun measures to normalize operations at the electronics company, the group said on March 4.
Dayou Group purchased an 84.5 percent stake in Daewoo Electronics from DB Group and financial investors through a special purpose company, confirmed by a Daewoo shareholders’ meeting on Feb. 28. The shareholders elected Ahn Jung-gu as the company’s representative director.
The funds for acquiring and normalizing Daewoo Electronics were raised through the sale of Smart Savings Bank to JS Asset Management also on Feb. 28, a 78 billion won ($70 million) transaction.
An official with Daeyou Group said that “sufficient liquidity has been secured from the group’s internal funds and the proceeds from the sale of Smart Savings Bank” to fund the normalization of Daewoo.
The acquisition of Daewoo Electronics follows a 2014 acquisition by Dayou Group of Dayou Winia, formerly WiniaMando, strengthening the company’s position in the home appliance market.
Dayou Group said it hoped to create synergies between Daewoo’s overseas distribution networks and Dayou Winia’s domestic logistics infrastructure to return to operating profitability within the year.
By Won Ho-jung/The Korea Herald (email@example.com)