Ssangyong Motor's New Owner Search Likely to Take Shape by the End of This Month

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] The new prospective owner of Ssangyong Motor is expected to be revealed around the 29th. Although the withdrawal of SM Group, ranked within the top 40 in the business world, dampened the atmosphere somewhat at the last minute, industry interest in the Ssangyong Motor acquisition battle continues as three electric vehicle-related companies have thrown their hats into the ring.

According to industry sources on the 22nd, Ssangyong Motor and the sales lead manager EY Han Young Accounting Corporation plan to select and notify one preferred negotiation candidate and one preliminary negotiation candidate around the 29th of this month. Ssangyong Motor is conducting the selection process based on acquisition proposals. In particular, it is reported that they are carefully reviewing investment commitment letters and bank payment guarantees, focusing on proof of funds.

In this final bidding, the EL B&T consortium reportedly offered an amount in the low 500 billion KRW range, the Edison Motors consortium in the high 200 billion KRW range, and Indi EV in the low 100 billion KRW range. Industry insiders expect the competition to be mainly between the two bidders excluding Indi EV, which submitted a bid in the 100 billion KRW range.

However, since the Seoul Rehabilitation Court has requested the EL B&T consortium, Edison Motors consortium, and Indi EV, who submitted letters of intent to acquire Ssangyong Motor, to supplement their management normalization plans and resubmit their bidding documents, the selection of the preferred and preliminary negotiation candidates may be delayed until around the 5th of next month.

Meanwhile, Ssangyong Motor plans to select the preferred negotiation candidate not only based on the acquisition price but also considering the willingness and capability to stably grow Ssangyong Motor after acquisition. Ssangyong Motor expects to sign a binding memorandum of understanding (MOU) by early next month, conduct about two weeks of due diligence, negotiate acquisition payments and key contract terms, and conclude an investment contract by November.

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