Edison Motors Extends Ssangyong Motor Detailed Due Diligence Until November 30
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[Asia Economy Reporter Kim Daehyun] The court has accepted Edison Motors' request to extend the due diligence period for acquiring Ssangyong Motor by one week.
According to the legal and automotive industries on the 23rd, the Seoul Rehabilitation Court approved the extension of the due diligence period requested by the Edison Motors consortium for Ssangyong Motor. Edison Motors extended the due diligence period, which was originally scheduled to end on this day, until the 30th of this month.
A court official stated, "Since there was a lot of content and more time was needed for the due diligence, we approved the extension of the due diligence period."
Earlier, the Edison Motors consortium was selected as the preferred bidder by submitting approximately 310 billion KRW as acquisition funds for Ssangyong Motor. Edison Motors and Ssangyong Motor signed a memorandum of understanding (MOU) for the merger and acquisition (M&A) on the 2nd of this month, and received court approval the following day.
Edison Motors is reviewing Ssangyong Motor's specific assets and liabilities. Based on the due diligence, if the main contract is signed, Ssangyong Motor will submit a rehabilitation plan to the court that includes debt repayment and funding plans. Currently, Ssangyong Motor is known to have debts of about 700 billion KRW, including public claims.
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Edison Motors plans to raise the acquisition funds of 310 billion KRW through the first round of paid-in capital increase and from SI (financial investors) and FI (strategic investors). Among the operating funds after acquisition, 490 billion to 530 billion KRW will be raised through the second round of paid-in capital increase and from SI and FI, and 700 billion to 800 billion KRW will be raised through asset-backed loans. The total acquisition funds are estimated to be between 1.48 trillion KRW and 1.62 trillion KRW.
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