Ssangyong Motor

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Title SsangYong Motor selects the KG Consortium as its final bidder
Date 2022-06-29

▪ Contract with the KG Consortium to conclude the sale without change to the investment conditions

▪ Rehabilitation plan based on the investment proposal to be submitted to the court by the end of July

 

SsangYong Motor Company (SYMC) has announced that it has selected the KG Consortium as its final bidder to acquire the company, as approved by the Seoul Bankruptcy Court.

 

The KG Consortium comprises the following special interest companies: KG Mobility, KG ETS, KG Steel, KG Inicis, KG Mobilians, and private equity funds Cactus PE and Pavilion PE, with KG Mobility as the principal lead of the consortium.

 

SsangYong and EY (Ernst & Young) Korea, the appointed assessor, decided to promote the resale of the business using a stalking-horse bid following the cancellation of the agreement reached with Edison Motors Consortium, which failed to pay the balance for its proposed takeover. SsangYong and EY selected the KG Consortium as their preferred bidder, and a conditional investment contract was signed on May 18th.

 

Following evaluation of the acquisition price, fundraising plans, the certainty of financing and the form of inflow (equity capital or liabilities, etc.), the KG Consortium was selected as the final bidder. SsangYong Motor will now prepare a rehabilitation plan based on the conditional investment agreement and submit this to the court before the end of July. After this, a meeting of creditors and shareholders will be held by the end of August or early September for their ratification.

 

Commented Yong-won Chung, the receiver: "We are establishing a strong foundation for the successful corporate rehabilitation of SsangYong, both through the selection of the final bidder to take the business forward, and with the number of pre-orders already placed for the recently announced Torres SUV which have already exceeded 25,000 units.

 

“Through this finally successful M&A (merger & acquisition), the company will be able to shorten the turnaround time by expanding its line-up of eco-cars, and preparing itself for renewed competitiveness in the global marketplace. I would like to thank all those who have participated in this process, and especially those now committed to acquire the business and take it forward.” <End>

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