▪ Key milestones:

- Edison Motors Consortium selected as the Preferred Bidder in Oct. 2021

- MOU signed in Nov. 2021

- Definitive Agreement signed on Jan. 10, 2022

▪ Edison Motors Consortium to dispatch a team to facilitate acquisition after Court approves SsangYong Motor’s rehabilitation plan

▪ Company to work on a rehabilitation plan and obtain Court’s approval thereof for a quick normalization of its operations

SsangYong Motor announced on Jan. 10, 2022 that it signed a definitive agreement with its preferred bidder, the Edison Motors Consortium, for an M&A.

The Edison Motors Consortium, after being selected the preferred bidder for this M&A deal in Oct. 2021, signed an MOU with SsangYong Motor on Nov. 2, 2021 and conducted a due diligence. After negotiations, the two parties reached an agreement on the acquisition money and other terms and conditions and signed the definitive agreement.

One of the disputed points, which was the timing of dispatching a team for facilitating the acquisition process by Edison Motors was resolved by agreeing that it should be after Court approves the rehabilitation plan, and Edison Motors Consortium’s request that the use of the loan for SsangYong Motor’s operations be subject to “prior approval” was changed to “prior consultation.”

Furthermore, both parties also agreed to conclude an agreement on strengthening collaboration between the engineers of the two parties with the view to increase product competitiveness of SsangYong Motor’s EV and ICE vehicles in terms of driving range, dashboard, and grill, etc.

Upon signing the definitive agreement, the Edison Motors Consortium remitted the 10% contract money of the acquisition money (i.e. 304.8 bn won including the initial commitment money).

As the next step, SsangYong Motor would call for a meeting of the shareholders and creditors to obtain their approval as well as the Court’s for its rehabilitation plan to complete the rehabilitation proceedings.

To this end, SsangYong Motor will submit its rehabilitation plan, which content will focus on the distribution of the acquisition money to the creditors, to the Rehabilitation Court as soon as it is ready. The deadline for the submission of the rehabilitation plan has been extended from last year December to March 1, 2022 as approved by the Court.

The Company needs to obtain the approval of the creditors and shareholders as follows: 3/4 approval of the secured creditors, 2/3 approval of creditors, and 1/2 approval of shareholders. The Edison Motors Consortium has to remit the balance acquisition money five business days prior to the meeting of the creditors and shareholders.

With the signing of the definitive agreement, SsangYong Motor hopes to remove future uncertainties and facilitate normalization of its operations. <Ends>