Electronics manufacturer iriver has returned to the M&A market 5 years after it was sold to Vogo fund.
Teaser letters for the Iriver sale have appeared already. Vogo is asking for at least 40 billion won for its 34.7 percent stake.
Industry sources say that the company’s deterioration is responsible for the sale. In 2006, shortly before its’ sale to Vogo, iriver had sales of 149.5 billion won and an operating loss of 54.4 billion won. Turnaround measures brought sales and operating profits in 2008 to 206.8 billion won and 5.5 billion won, respectively
However, the company recorded deep losses in 2009 and 2010, and there has been no improvement in sight. Additionally, the market for MP3 and MP4 players is shrinking due to the proliferation of smart phones.
Source: the bell