Iran's Entekhab set to acquire Daewoo Electronics for $540 million

Iranian appliance maker Entekhab Industrial Group is likely to acquire South Korea's Daewoo Electronics in a deal worth around $540 million, Daewoo's creditors said today.

The Iranian group beat Swedish giant Electrolux to emerge the top bidder for the ailing appliances group, the creditors said.

Daewoo's creditors picked Entekhab's offer after they found its bid superior to Electrolux's, leading creditor Woori Bank said. It did not disclose financial terms of the offer.

Local blogs and online sources put the value of the offer at 600 won (around $540 million). Creditors are aiming to close the agreement by the end-July, Woori said.

Daewoo Electronics, once the flagship unit of the failed Korean chaebol, is now almost wholly owned by its creditors.

Entekhab is already the dealer for Daewoo products in the Middle East and if a deal with the Iranian company falls through, Electrolux will be the reserve bidder, the creditors said.