Iran's Entekhab buys Daewoo Elec. for $519.3m

November 10, 2010
SEOUL (Dow Jones)--Iranian home appliance maker Entekhab Industrial Group Monday said it has signed a final contract to acquire South Korea's Daewoo Electronics Co.Daewoo Electronics Co. with the firm's creditors. Entekhab, chosen as the preferred bidder by Daewoo ElectronicsDaewoo Electronics' creditors in April, said in a statement it aims to relist the firm in Seoul within three years. It didn't disclose the final price, but a person familiar with the situation told Dow Jones Newswires Monday that it will pay around KRW580 billion ($519.32 million) for the company. Entekhab said in its statement that it had initially offered around KRW605 billion. The Iranian firm said Daewoo ElectronicsDaewoo Electronics will continue to be run by South Korean executives, adding that it will inject capital into the firm to shore up its finances and establish new markets for the company in regions like the Middle East and North Africa.