Korean car maker SsangYong to open bid for new buyer
The firm plans to receive bids from potential buyers through September 15
Seoul: Cash-strapped Koreain carmaker SsangYong Motor Co plans to receive acquisition proposals through mid-September, as a two-way race between two local investors is expected, industry sources said on Sunday.
The firm plans to receive bids from potential buyers through September 15. So far, a total of 11 investors from home and abroad have submitted letters of intent to take over SsangYong.
Among major candidates are SM Group, whose businesses range from construction to auto parts manufacturing, and Edison Motors Co., which has teamed up with a homegrown equity fund, Korea Corporate Governance Improvement (KCGI), reports Yonhap news agency.
In April, SsangYong was placed under court receivership for the second time after undergoing the same process a decade earlier.
Mahindra exit
The new sale move came as Indian parent Mahindra & Mahindra Ltd. failed to attract an investor due to the prolonged COVID-19 pandemic and its worsening financial status.
From January to July, its sales fell 15 per cent to 48,229 autos from 56,846 during the same period of last year. Its lineup consists of the Tivoli, Korando, Rexton and Rexton Sports SUVs.
China-based SAIC Motor Corp. acquired a 51 per cent stake in SsangYong in 2004 but relinquished its control of the carmaker in 2009 in the wake of the global financial crisis. In 2011, Mahindra acquired a 70 per cent stake in SsangYong for 523 billion won and now holds a 74.65 per cent stake in the SUV-focused carmaker.
SsangYong plans to revamp its business portfolio and develop at least five electric vehicle models over the next four years.