The final bid deadline for troubled South Korean carmaker Ssangyong Motor has been extended by three weeks to give interested parties more time to carry out due diligence.
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Ssangyong, said to be worth up to US$500m, has attracted interest from six bidders including the Renault-Nissan alliance and Indian utility vehicle maker Mahindra.
Ssangyong said in a statement that the decision to delay the deadline “is to reflect bidding participants’ demand for more time for due diligence and detailed documentation including funding plans”.
Bids were expected to be lodged by 20 July and the delay has prompted concern over whether the process is going smoothly.
Ssangyong Motor lists Barclays Bank and China’s SAIC Motor as its top shareholders. Samjong KPMG and Macquarie Group which are handling the sale, have told potential bidders to submit their binding final proposal by 10 August.
Ssangyong, South Korea’s smallest automaker, is on a recovery path since it was put under a court led restructuring plan early in 2009. It reported a 34 fold rise in monthly sales to a record last month due to domestic consumption recovery and strong export growth.
