Electric truck maker expects to be Ssangyong preferred bidder

Graeme Roberts October 20, 2021 (Last Updated October 20th, 2021 16:41)

A preferred bidder for bust Ssangyong has been selected.

Electric truck maker expects to be Ssangyong preferred bidder

A consortium led by Edison Motors was expected to be selected as the preferred bidder for SsangYong Motor, according to a South Korean media report.

According to Korea Joongang Daily, SsangYong Motor said it had chosen the consortium led by the electric truck maker as the preferred bidder and would ask Seoul Bankruptcy Court to approve the decision.

The report said the Edison Motors-led consortium included Korea Corporate Governance Improvement (KCGI) fund, Keystone Private Equity and Semisysco. It was reported the consortium submitted KRW200bn (US$170m) as the acquisition price for the beleaguered carmaker.

Another consortium lead by Korean electric vehicle company EL B&T, which reportedly submitted a KRW500bn bid, was expected to compete with Edison Motors, but was ruled out because it “was seen as lacking financing capability,” according to Seoul Bankruptcy Court.

“SsangYong Motor and the manager of the deal [EY Hanyong] evaluated the acquisition price as well as the bidder’s determination and capability to stably run SsangYong Motor’s business after the acquisition,” SsangYong Motor said in a statement cited by the daily.

Edison Motors is an electric truck manufacturer based in Hamyang, South Gyeongsang. Its revenue was KRW89.8bn last year and its operating profit was KRW2.8bn.

It was one of the first companies to step forward to salvage SsangYong Motor after it was placed under court receivership in April.

SsangYong Motor planned to sign a memorandum of understanding with Edison Motors this month and finalise the details of the deal, including the price, after November, the newspaper’s report added.