Ssangbangwool Group submits letter of intent to acquire Ssangyong Motor to sale lead manager

[Image source=Yonhap News]

[Asia Economy Reporter Song Seung-yoon] Ssangbangwool Group, which is pursuing the acquisition of Ssangyong Motor, has submitted a letter of intent to the sales lead manager.

Ssangbangwool Group announced on the 8th that it selected Samil PwC as its acquisition advisor and submitted a letter of intent to EY Han Young, the sales lead manager. In addition, it also submitted a statement to the rehabilitation court.

Ssangbangwool Group has been promoting the acquisition of Ssangyong Motor by forming a consortium centered on Kwanglim, the group's special-purpose vehicle company. On the 6th, Kwanglim announced that it had completed preparations for funding the acquisition of Ssangyong Motor through KB Securities and Eugene Investment & Securities and would begin full-scale acquisition work. Although the specific method of funding was not mentioned, many view a paid-in capital increase as the most likely method.

Ssangyong Motor signed an acquisition contract after Edison Motors Consortium was selected as the preferred negotiator in October last year. However, the contract was terminated as Edison Motors Consortium failed to pay the remaining acquisition amount of 274.3 billion KRW by the payment deadline on the 25th of last month.

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