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Videocon floating SPV to buy out Daewoo Electronics?
Consumer goods maker Videocon is believed to be floating a Special Purpose Vehicle to buy out Daewoo Electronics. But, as CNBC-TV18 reports it could be a bumpy ride ahead.
Consumer goods maker Videocon is believed to be floating a Special Purpose Vehicle to buyout Daewoo Electronics. But, as CNBC-TV18 reports it could be a bumpy ride ahead.
Videocon's buyout of Daewoo Electronics may have hit a roadblock over valuations, but Videocon is already finalising an SPV structure for the mega acquisition. The special purpose vehicle is likely to be a JV between Videocon and US based private equity group Ripplewood.
The Daewoo deal size is reported to be around USD 700 million and according to sources, Ripplewood will invest around USD 350-400 million in the JV, to buyout Daewoo.
It is this SPV that will control Daewoo assets throughout the world, if the deal is struck. But before all that can happen, Videocon will have to close the deal, which seems to be encountering valuation issues.
The Daewoo deal size is reported to be around USD 700 million and according to sources, Ripplewood will invest around USD 350-400 million in the JV, to buyout Daewoo. 
