General Motors, after months of negotiation, has subscribed an agreement platform with creditors to acquire the South Korean automotive company Daewoo, which declared bankruptcy in November 2000.This preliminary agreement, signed in Seoul, grants the use of four Daewoo manufacturing plants, inside and outside of South Korea; the definitive one will be signed within the end of 2001.
GM, for this operation, will spend 400 million dollars for the 67% of shares, whereas creditors will receive the remaining 33% equal to about 197 million dollars. The latter could receive some privileged shares for an overall nominal value of 1,2 billion dollars.
Still not official remains the extension of the agreement to 22 Daewoo sales branches in other countries, and to two plants in Egypt and Vietnam. With this move General Motors hopes to increasingly expand its presence in the Asian market.
September.2001
General Motors
Daewoo
