Iranian electronics manufacturer Entekhab has submitted a letter of intent to purchase a 100% stake in South Korea’s Dongbu Daewoo Electronics.
China’s Meidi Electronics, Turkey’s Vestel and two other Korean companies were also vying for the acquisition as of late Tuesday, the deadline for the main bidding applications, according to South Korea’s financial industry, the Korea Herald reported.
Dongbu Daewoo Electronics is an export-oriented home appliance provider that specializes in small- and mid-sized products sold at affordable prices.
The sale of cash-strapped Dongbu Daewoo Electronics follows a decision by financial investors that had funded Dongbu Group’s purchase of Daewoo Electronics in 2013.
The company is currently exporting home appliances, including washing machines, refrigerators and ovens, to 80 countries in South America, Europe, Asia and North Africa, according to the firm.
Iran’s Entekhab is a partner of Dongbu Daewoo, which is expected to lend it a competitive edge in the bid. The Iranian firm is rising as a strong contender, sources said.
“A preferred bidder is expected to be announced this week at the earliest,” a financial source said.
The three foreign players are viewed as having an advantage, considering their capital power compared to Korea-based Dayou Winia and SAE-A, according to an industry source.
The Dongbu Daewoo deal is expected to be worth around 200 billion won ($185.7 million).
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