Korea’s troubled kimchi fridge maker Winia seeks new owner
Ye-Rin Choi
Dec 21, 2023 (Gmt+09:00)
Winia Dimchae kimchi refrigerator with wine cooling function (File photo) Winia Co., South Korea’s troubled kimchi refrigerator manufacturer under court receivership, is looking for a new owner to save the company from bankruptcy by repaying debts and securing fresh capital for operations.
The maker of Dimchae kimchi fridges said on Thursday it has selected Samil PricewaterhouseCoopers, the South Korean member firm of global accounting industry leader PwC, as a lead manager of the sale to swiftly start the process to find a new owner after securing court approval.
Winia is targeting a rights offering before the court authorizes a rehabilitation plan. The company is set to collect letters of intent by the end of January 2024 and wrap up an investment deal by March.
“The M&A process is part of the rapid rehabilitation measures for the company,” said Kim Hyuk-Pyo, the court-appointed manager for Winia. “We will do our utmost to restore consumer trust by strengthening the brand value of Dimchae, No. 1 in the kimchi refrigerator market, and lay the foundation for a leap forward.”
The move pushed up Winia’s share prices by the daily limit of 30% in the South Korean stock market, although the junior Kosdaq fell 0.4%.
DAYOU WINIA TO GIVE UP ELECTRONICS BUSINESS
Once Winia finds a new owner, its current top shareholder Dayou Winia Group is poised to abandon the electronics business.
The group, which had focused on manufacturing auto parts, started the electronics business by acquiring Winia, formerly known as Winia Mando Inc., at 70 billion won ($53.6 million) in 2014.
In 2018, Dayou Winia took over Winia Electronics Co., formerly Dongbu Daewoo Electronics, to expand the home appliances business.
The cash-strapped group has been in trouble since 2020 as COVID-19 hurt the global consumer electronics sector and disrupted plant operations.