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April 29, 2010updated 08 Apr 2021 5:31am

SOUTH KOREA: Mahindra said to be eyeing Ssangyong stake

Indian vehicle maker Mahindra & Mahindra (M&M) is reportedly among a group of potential investors interested in buying stakes in beleaguered Ssangyong.

Indian vehicle maker Mahindra & Mahindra (M&M) is reportedly among a group of potential investors interested in buying stakes in beleaguered Ssangyong.

Media reports in Korea have suggested that M&M has registered its interest with Ssangyong’s management.

According to the Korea Economic Daily, M&M has sent a letter to Ssangyong expressing its interest in acquiring management rights. It cited no sources for the report.

Ssangyong has confirmed that there are companies interested in investing in Ssangyong but has declined to identify them.

In December, a court approved Ssangyong’s turnaround plan, which calls for the stake of former owner SAIC to be reduced from 51 to 11.2 percent.

It also includes a plan to convert almost USD1bn of debt into new shares. New stock will account for 50.1% of all shares and open bids for the stake will be accepted.

Reports in Korea have said that a number of Korean concerns have expressed interest in Ssangyong, including a private equity fund.

Ssangyong said it will officially announce its plan for the auction early next month and receive letters of intent from investors by the end of next month. The preferential bidder will be determined in August, with the contract to be finalized by the end of October, the company said.

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