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January 10, 2022updated 21 Jan 2022 1:07pm

Edison’s SsangYong acquisition deal close

After delays last week, it looks like the Edison-led consortium’s acquisition of bankrupt SsangYong is close to being over the line, though creditors remain to be convinced.

By David Leggett

Reports in Korea says that a consortium led by electric carmaker Edison Motors has now signed a final deal with SsangYong to take over its assets.

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The Yonhap news agency reported that a Seoul court has approved that acquisition and also said that a final deal has now been signed.

The report said that under the final agreement, Edison has agreed to acquire SsangYong for 304.8 billion won (US$250 million), and the acquisition money will all be spent to repay some of the carmaker’s debt to financial institutions.

Edison reportedly said it has paid 10 percent of the acquisition money and secured the remaining 274.3 billion won from partners.

The Yonhap report also said Edison has also agreed to lend 50 billion won in operating capital to SsangYong to help it stay afloat.

However, SsangYong will remain under court receivership until the court approves Edison’s rehabilitation plans and two thirds of SsangYong’s creditors accept it. Analysts note that the Korea Development Bank (KDB), the biggest creditor, will be demanding a credible business plan and could be hard to satisfy.

The Korea Herald reported that under the court-led sale procedure, SsangYong’s rehabilitation plan should be submitted by March 1.

Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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