Administrators for bankrupt South Korean SUV maker SsangYong Motor said they expected to receive acquisition proposals by mid-September, as two investors emerged as favourites to take over the company, according to reports.
Local sources suggested 11 potential domestic and overseas investors had submitted letters of intent (LoIs) to take over Ssangyong, with two bidders leading the race including medium-sized local conglomerate SM Group (Samra Midas) and a consortium led by Edison Motors Company, Keystone private equity fund and domestic equity fund Korea Corporate Governance Improvement (KCGI).
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Another significant bidder is Cardinal One Motors, a new company established by Duke Hale, the founder and CEO of US vehicle importer HAAH Automotive Holdings.
Local analysts previously suggested it would take a bid of between KRW800bn and KRW1trn ((US$700m-US$870m) to take over Ssangyong.
In July Ssangyong announced plans to sell the site of its only vehicle assembly plant, in Pyeongtaek, to the local government to raise funds as part of its self-rescue plan.
The company said it planned to build a new plant in the same city which would help it switch its entire product range to all electric models. At least five new battery powered models are expected to be developed over the next four years.
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By GlobalDataIn the first seven months of 2021, the company’s global vehicle sales fell by 15% to 48,229 units from 56,846 in the same period of last year.
