Outline of Ssangyong Motor Acquisition... Preliminary Due Diligence and Advisor Selection Narrowed Down to 5 Companies

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[Asia Economy Reporter Seongpil Cho] Among the 11 domestic and international companies that expressed their intention to acquire Ssangyong Motor, it has been confirmed that 7 companies conducted preliminary due diligence last month. It is expected that 5 companies, which have completed the selection of advisory firms, will participate in the main bidding this month.

According to a comprehensive report from Asia Economy on the 1st, 7 companies including SM Group and Edison Motors, which submitted letters of intent to acquire Ssangyong Motor, paid the information usage fee by the 27th of last month and conducted preliminary due diligence including management interviews and factory tours. Specifically, these are SM Group, originating from the construction company Samra, domestic electric bus specialist Edison Motors, electric scooter company K-Pop Motors, Cardinal One Motors, a new corporation of HAAH Automotive, electric vehicle and battery manufacturers LBN Tech and INDI EV, and hydrogen energy specialist Hygen Solution.

Preliminary due diligence is only granted to those who submit a letter of intent, pass the document screening, and pay the information usage fee. EY Han Young Accounting Corporation, the lead sales agent, is known to have judged that there were no disqualifications among all 11 companies that submitted letters of intent during this document screening. In fact, all companies could conduct preliminary due diligence as long as they paid the information usage fee. In other words, companies that did not pay the information usage fee can be interpreted as having no real intention to acquire.

The key question is how many of the companies that completed preliminary due diligence will participate in the main bidding. Some companies may engage in last-minute strategic moves regarding the acquisition price and other factors. However, it has been confirmed that among the companies that completed preliminary due diligence, 5 have selected advisory firms in accounting and legal fields, so it is cautiously expected that the main bidding will be centered around these companies. Considering the special nature of rehabilitation sales, which requires discussions with creditors in addition to preparing a rehabilitation plan, the selection of advisory firms is considered essential by industry insiders.

Previously, Ssangyong Motor and the lead sales agent sent bidding guidance letters to all acquisition candidates, including those participating in preliminary due diligence. Acquisition proposals are expected to be received by the 15th of this month. Based on acquisition proposals containing acquisition prices and business plans, a preferred negotiator will be selected. Industry insiders believe that considering financial mobilization capabilities, SM Group or Edison Motors are likely to be selected as the preferred negotiators.

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