MUMBAI: A consortium led by India's largest electronics firm Videocon Industries Ltd have signed a non-binding memorandum of understanding MoU to buy South Korea's Daewoo Electronics Corp for $ 731 million.

While Videocon will own 50.1% in the consortium, Brussels-headquartered private equity firm RHJ will own 49.9%. Woori Bank is acting as the principal bank of the creditor financial institutions committee (CFIC) for Daewoo Electronics for the proposed purchase of the equity and debt interest of the CFIC in the company.

Seoul-based Woori Bank spokesman Jung Hee Kyung has been quoted as saying that the purchase offer is an all cash one.

For Videocon, the Daewoo acquisition comes with its 25 manufacturing facilities in South Korea, the US and the UK, providing the Indian major with a global presence. Daewoo would not only help Videocon move up the value chain in the colour TV business, but also complement its previous acquisitions. In 2005, it had acquired the picture tube business of France's Thomson for $291 million. Later, it also bought Electrolux Kelvinator India for $76 million.

Videocon Industries chairman & managing director VN Dhoot has been quoted as saying that the company would be able to leverage Daewoo's R&D centres in South Korea for TVs, washing machines and refrigerators.