Tuesday, September 12 2006 16:52 Hrs (IST) - World Time -

New Delhi: India's consumer electronics major Videocon has acquired South Korea's Daewoo Electronics, in a deal which is reported to be worth around 700 million dollars (nearly Rs 3,220 crore).

"We have signed (the agreement) today morning," Videocon chief Venugopal Dhoot told sources.

He, however, declined to comment on details of the deal, including the valuation, citing 'no disclosure agreement'.

Videocon had jointly bid with US-based equity fund Ripplewood for the debt-burdened Daewoo Electronics, which was put on the block by its lenders. The consortium reportedly offered 700 million dollars for a 97.5 per cent stake held by the creditors.

According to reports from Seoul, the consortium is 50.1 per cent owned by Videocon and the rest held by Ripplewood.

An AFP report quoting a statement from Daewoo Electronics said that the takeover was the only realistic option to save the country's third largest electronics group which is now in the seventh year of a debt workout programme.

Expressing strong support for the takeover led by Videocon, Daewoo president Lee Seung-Chng said the reason for actively pushing for a merger and acquisition was the company's desperate need for investment in technology development.

The deal marks Videocon's third purchase in the last one year after Thompson's global picture tube business for 240 million euros (about Rs 1,260 crore) and loss making Indian subsidiary of AB Electrolux, Sweden.

Videocon had taken over Electrolux Kelvinator India in a cashless transaction, wherein AB Electrolux agreed to subscribe to Videocon's GDR worth about Rs 406 crore as part of the deal.