View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
May 19, 2022

KG-led bid for Ssangyong approved ahead of auction

Court approves preliminary bid by new consortium.

Bankrupt Ssangyong Motor announced it had signed a conditional investment agreement with a local consortium ahead of an auction for the automaker scheduled later this month.

According to local reports, the Seoul Bankruptcy Court has approved a preliminary bid by a consortium led by local industrial firm KG Group to take over Ssangyong.

The main administrator, accounting firm EY Hanyoung, described the initial bid by the KG-Pavilion-PE consortium as the forerunner in terms of acquisition price, fund raising plans and employment guarantees. The bid, said to be in the region of KRW900bn (US$707m), set the minimum asking price ahead of the final auction.

The administrators put Ssangyong Motor back on the market after a consortium, headed by local electric vehicle maker Edison Motors, failed to complete the KRW305bn (US$240m) acquisition of the automaker by a 25 March deadline.

Two other consortiums were said to have submitted letters of intent (LOIs) to take over Ssangyong, headed by EV parts maker EL B&T and clothing company Ssangbangwool. The latter indicated it still planned to participate in the upcoming auction despite submitting a lower initial bid.

Ssangyong administrators aim to select a preferred bidder from the final auction by the end of June, sign an acquisition deal by early July and obtain approval from the bankruptcy court by late August.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy


Thank you for subscribing to Just Auto