The tender offer for South Korea’s third largest home appliance maker Dongbu Daewoo Electronics Corp. has returned to the starting point due to price disagreement between the sellers and their preferred bidder - a consortium of Iran’s largest consumer electronics maker Entekhab Industrial Group and Korean private equity fund Whale Investment.

According to industry sources on Thursday, the two sides failed to narrow their differences in sale price and terms. The Entekhab consortium reportedly offered 90 billion won for the entire 100 percent plus up to 100 billion won through rights offering. The existing stakeholders had hoped for around 200 billion won.

Dongbu Daewoo’s financial investors and lead advisor NH Investment & Securities Co. will likely turn to the losing bidder - a consortium of Dayou Winia Co. and Turkey’s Vestel.

Dongbu Daewoo has been put up for sale as Dongbu Group who had acquired the firm with financial stakeholders in 2013 failed to meet management targets that include carrying out an initial public offering and maintaining certain level of net assets. It was the second time for Entekhab to bid for the Korean electronics maker after it failed to raise the funds in 2010.

By Lee Dong-in and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]