KG Mobility Selected as Preferred Negotiation Partner for Edison Motors

KG Group, which acquired KG Mobility (Ssangyong Motor), is pushing to acquire Edison Motors, an electric vehicle company that once competed to acquire Ssangyong Motor.

On the 26th, KG Mobility announced that it had been selected as the "preferred negotiation partner for a conditional investment contract" for the pre-rehabilitation merger and acquisition (M&A) of Edison Motors by the rehabilitation court (Changwon District Court).

Previously, Ssangyong Motor, facing prolonged losses and unable to repay loans borrowed from financial institutions, applied for rehabilitation proceedings at the court in December 2020. The court decided to commence rehabilitation proceedings in April of the following year. During the rehabilitation process, Ssangyong Motor selected Edison Motors as the preferred negotiation partner for M&A, but the contract was terminated as Edison Motors failed to pay the remaining acquisition funds. Subsequently, Ssangyong Motor entered a resale process, confirmed the KG consortium as the final acquirer in August last year, and concluded the corporate rehabilitation process in November last year.

Edison Motors' financial condition rapidly deteriorated during the process of attempting to acquire Ssangyong Motor. The court decided to commence corporate rehabilitation proceedings. Accordingly, the process of selecting a preferred negotiation partner for a conditional investment contract proceeded.

KG Mobility decided to acquire Edison Motors, submitted a letter of intent (LOI) last month, conducted preliminary due diligence until the 14th, and submitted a conditional investment acquisition proposal on the 21st.

If the acquisition plan is finalized after an internal board meeting, KG Mobility plans to sign a conditional investment contract with Edison Motors and acquire the company through a "Stalking Horse" method, which involves conducting a separate public bidding process to confirm the acquirer. The completion date of the acquisition may vary depending on the appearance of other bidding candidates.

Based on its own due diligence, KG Mobility stated that Edison Motors produces electric buses with a localization rate of over 85%, and judged that it has sufficient rehabilitation potential due to its own technological competitiveness as well as its sales network.

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