KG Mobility Finalizes Selection as Preferred Bidder for Edison Motors Acquisition

"We Will Develop into a Comprehensive Commercial Vehicle Company"

KG Mobility announced on the 3rd that it has been selected as the final acquirer of Edison Motors.

After Edison Motors was placed under court-ordered corporate rehabilitation proceedings in January, it began the M&A process using the stalking horse method. The stalking horse method involves selecting a prospective buyer, conducting a separate public competitive bidding, and granting the purchase right to the prospective buyer if the bidding fails.

KG Mobility was selected as the preferred negotiator after submitting a Letter of Intent (LOI) from interested investors in March, conducting preliminary due diligence, and signing a conditional investment agreement.

KG Mobility Headquarters Exterior [Photo by KG Mobility]

Edison Motors submitted a rehabilitation plan to the court, and if creditors and other stakeholders agree to the plan through a creditors' meeting, the rehabilitation process can be concluded.

KG Mobility plans to develop Edison Motors into a comprehensive commercial vehicle company by expanding its product lineup to include medium and small trucks and buses, strengthening collaboration in research and development and purchasing sourcing, improving profitability through increased efficiency, and increasing sales volume by expanding into global markets.

First, KG Mobility will utilize its network to enter the ASEAN region and other markets as quickly as possible. It will also work to shorten the new product development cycle through shared parts supply chains and collaboration in research and development.

KG Mobility stated, “We will fully cooperate to expedite the conclusion of Edison Motors’ rehabilitation process to restore customer trust and achieve early business normalization. Through collaboration, we expect to create synergies in various areas such as purchasing, production, R&D, and domestic and international sales.” It added, “Based on the recovery of the sales network after acquisition, we will increase sales, improve profitability, and expand into global markets to grow Edison Motors into an eco-friendly comprehensive commercial vehicle company that contributes to the development of our society.”

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