Ssangbangwool, KG-PavilionPE Alleged Collusion in Ssangyong Motor Acquisition... "Will File Injunction"

[Asia Economy Reporter Kwon Jae-hee] As the KG-Pavilion consortium has been selected as the stalking horse bidder for Ssangyong Motor, the Gwanglim consortium, which participated in the limited bidding competition, announced on the 13th that it will file an injunction with the court.

This comes amid allegations that the KG-Pavilion consortium colluded.

On the same day, the Gwanglim consortium stated in a press release, "We regret the collusion controversy surrounding the alliance between KG Group and Pavilion PE." They argued that KG Group and Pavilion PE, which had separately pursued the acquisition of Ssangyong Motor, formed a consortium just before the deadline for submitting acquisition proposals, suggesting the possibility of collusion.

The Gwanglim consortium cited a 2013 Supreme Court precedent as the basis for this claim. According to the precedent, if bidders agreed in advance to decide the successful bidder, causing other bidders who were not the designated successful bidder to forgo participation altogether, it would be considered unfair unless there were special circumstances, as it completely eliminates the possibility of competition functioning (Supreme Court 2013Du 26804 ruling).

They also referenced Article 40, Paragraph 1, Item 8 of the Fair Trade Act, which prohibits businesses from agreeing to jointly decide on competitive bidding elements such as the successful bidder, bid price, or bid ratio in any manner.

A representative of the Gwanglim consortium said, "The M&A acquisition condition proposal guide provided by the sale lead manager, Han Young Accounting Corporation, also includes clauses to prevent such unfair competition," adding, "This can be grounds for invalidating the bid, so we will proceed with legal measures."

They further stated, "Regardless of the stalking horse selection this time, the Gwanglim consortium will participate in the competitive bidding," and added, "We will participate in the acquisition battle until the end without giving up."

This content was produced with the assistance of AI translation services.