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Edison-led consortium named preferred buyer of Ssangyong Motor

If it successfully acquires the troubled SUV maker, Edison plans to turn the carmaker into an EV brand

By Oct 20, 2021 (Gmt+09:00)

1 Min read

Ssangyong Motor is set to be sold to Edison-led consortium
Ssangyong Motor is set to be sold to Edison-led consortium

A consortium led by electric bus maker Edison Motors Co. has been named the preferred buyer of South Korea’s troubled sport utility vehicle maker Ssangyong Motor Co.

According to the Seoul Bankruptcy Court on Wednesday, the Edison-led consortium has proven its fund-raising capability as well as its normalization plans for the debt-laden carmaker.

Both sides are slated to sign a memorandum of understanding on the Ssangyong share sale and purchase by the end of this month, followed by in-depth due diligence and the final deal to go through in November, barring the unexpected.

The purchase price is estimated at up to 1 trillion won ($851 million), including severance pay reserves, according to industry officials.

In a binding bid in mid-September, Edison formed a consortium with Seoul-based Keystone Private Equity, activist fund Korea Corporate Government Improvement Fund (KCGI) and Semisysco Co. for Ssangyong with a bidding price of 280 billion won.

Another consortium led by Korean electric vehicle and battery startup EL B&T offered the highest bid of 500 billion won to buy Ssangyong at the time.

EL B&T, which stands for Electrical Life Business and Technology, teamed up with Seoul-based Pavilion Private Equity and California-based HAAH Automotive's new entity Cardinal One Motors.

The Korando e-Motion, Ssangyong’s first electric vehicle, loaded for export to Europe
The Korando e-Motion, Ssangyong’s first electric vehicle, loaded for export to Europe

Edison Chairman Kang Young-kwon has said its consortium plans to raise 800 billion won to revive Ssangyong, saying it can finance another 500 billion won by selling a stake in Edison.

If it acquires Ssangyong, he said Edison aims to turn Ssangyong into an electric vehicle (EV) brand.

Edison has said it wants to sell about 300,000 cars, including 150,000 EVs, a year from establishing a new Ssangyong.

Ssangyong, 75% owned by India’s Mahindra and Mahindra Ltd., has been under court receivership since April of this year after it defaulted on its loan payments.

Write to Jong-Woo Kim and Hyun-Ah Oh at jongwoo@hankyung.com
In-Soo Nam edited this article.
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