Dongbu Group plans to invest \138B in Daewoo Electronics

Economy

Dongbu Group plans to invest \138B in Daewoo Electronics

Korean conglomerate Dongbu Group said yesterday it plans to invest 138 billion won ($127 million) in Daewoo Electronics after acquiring the country’s No. 3 home appliance maker last month.

In January, the group said its consortium inked a deal with Daewoo Electronics’ creditors to purchase the home appliance maker for 272.6 billion won.

Group affiliates, including Dongbu Hitek and Dongbu CNI, as well as Group Chairman Kim Jun-ki are set to invest the cited amount, they said in separate regulatory filings.

Dongbu plans to secure the remaining 134.6 billion won in acquisition money through financial investors.

Dongbu Group employs 40,000 employees across 59 subsidiaries, with total assets and total revenue estimated at $60 billion and $30 billion, respectively, according to the group’s Web site.

Dongbu’s acquisition of Daewoo came after five rounds of botched talks to buy Daewoo Electronics, a former unit of the now-defunct Daewoo Group.

Yonhap