SEOUL -- A $102 million deal to sell the commercial vehicle unit of South Korea's failed Daewoo Group to India's biggest truckmaker, Tata Motors Ltd., would be signed Wednesday, the South Korean company said.
The deal will be the latest in a series of sales of failed Korean companies since the 1997-98 Asian financial crisis.
Under the contract, Tata would buy the entire stake in the truckmaker by acquiring new shares to be issued at the end of March, Daewoo Commercial Vehicle Company Ltd. said in a statement.
Closing of the deal was set for March 29.
The amount does not include some liabilities and provisions against severance pays for employees.
Daewoo Commercial Vehicle, spun off from Daewoo Motor in November 2002, is the second-largest maker of heavy commercial vehicles in South Korea with a market share of 26 percent.
"With this deal, Daewoo Commercial is expected to have product competitiveness after strengthening research and development and after-sales services," said the court-appointed president of Daewoo, Chae Kwang-ok, in the statement.
Daewoo also produces tractors and other utility vehicles with an annual capacity of 20,000 vehicles. The company, which has 800 employees, has been under court protection while its parent, Daewoo Motor, sold most of its passenger car operations to General Motors and partners in 2002.
Tata was selected as preferred bidder for the troubled truckmaker late last year and has since completed due diligence.