[Featured Stock] EdisonEV Hits Intraday Limit Up on News of Ssangyong Motor Main Contract

[Asia Economy Reporter Ji Yeon-jin] Edison Motors is set to sign the final contract for the acquisition and merger (M&A) of Ssangyong Motor, leading Edison EV to hit the upper price limit during trading on the 10th.

On that day, at around 10:16 AM, Edison EV was traded on the KOSDAQ market at 28,400 KRW, up 29.98% compared to the previous trading day. Afterwards, the stock price slightly declined, recording 27,850 KRW at 10:30 AM, which is a 27.46% increase compared to the previous trading day.

Kang Young-kwon, Chairman of Edison Motors, announced the day before that the final M&A contract with Ssangyong Motor would be signed on the 10th. Edison Motors has paid 15.5 billion KRW out of the 30.48 billion KRW acquisition amount, which is 10% or 3.05 billion KRW. It is also known that they plan to pay the remaining 15 billion KRW after signing the final contract.

Last October, the Edison consortium, selected as the preferred bidder by submitting a bid of 310 billion KRW, paid a performance bond of 15.5 billion KRW in November and signed a memorandum of understanding (MOU). However, the final contract was delayed due to potential risks of hidden liabilities discovered during due diligence. Edison EV's stock price soared to 82,400 KRW on November 12 last year before sharply falling.

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