After the acquisition deal between SsangYong Motor and electric vehicle maker Edison Motors fell through last month, the former now has three new bidders vying for the right to bail the company out from bankruptcy.
SsangYong has received letters of intent from three companies interested in acquiring it
Industry sources say that each of the three prospective companies has reportedly submitted a letter of intent to accounting firm EY Hanyoung, which has been tasked by the Seoul Bankruptcy Court to oversee acquisition deals for SsangYong.
The first is KG Group, with interests spanning various fields such as chemicals, steelmaking, finance, food & beverage, information technology, and media. The conglomerate is heavily touted as the most feasible candidate to take over SsangYong, given its stable cash flow, funding capabilities, and experience in managing a diverse business portfolio.
Next is Ssangbangwool, a local company that specializes in manufacturing innerwear. It has reportedly secured 450 billion won (over Php 19.1 billion) in cash to be used in acquiring SsangYong, and is said to be forming a consortium with KH Group, a construction company also based in South Korea.
Edison Motors has reportedly filed an injunction to stop the sale of SsangYong to other interested bidders
The third contender is Pavilion PE, a private equity firm that reportedly intends to form its own consortium with financial institutions and conglomerates. This is Pavilion PE’s second bid to acquire SsangYong, previously teaming up with EV firm EL B&T before eventually losing out to the consortium led by Edison Motors in 2021.
Currently owned by Mahindra & Mahindra of India, SsangYong faces an October 15 deadline to find a new owner and submit a restructuring plan. Market observers say that the automaker will adopt a “stalking horse bid” where it will select a new buyer from an existing pool of bidders while already having an initial bidder at the same time, in order to maximize the value of its assets.
The auction for ownership of SsangYong will be held in May, with the company selecting a preferred bidder at the end of June.
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