The apparently Never Ending Story of Ssangyong’s bankruptcy has taken a new turn with South Korean media reports today saying chemicals-to-financial conglomerate KG Group has joined the bidding war with a KRW1.5 trillion (US$1.2 billion) offer.

Industry insiders told the Korea Herald KG Group recently submitted its letter of intent to acquire SsangYong Motor to the lead manager of the deal, EY Hanyoung.

The report said KG Group was founded in 2003 based on the country’s first fertilizer company Gyeonggi Chemical which was set up in 1985, and now acted as a holding company for the group. Over decades, it had carried out at least 15 mergers and acquisitions including steelmaker Dongbu Steel.

KG Group reportedly is forming a consortium to join the bid with private equity Cactus PE which helped it acquire Dongbu Steel in 2019.

According to the Korea Herald, market insiders see KG Group as the most feasible candidate to take over SsangYong, considering its stable cash flow, funding capability as well as know-how in managing a diverse business portfolio.

EN Plus, a local battery materials manufacturer which also builds trucks and devices for firefighting as well as special purpose vehicles, also announced its bid for SsangYong earlier this week.

Market sources told the Korea Herald Ssangbangwool had sold its shares in listed affiliates after seeing stock market gains following the firm’s bid announcement.

Ssangbangwool said it had secured KRW450 billion in cash that would be used for a “stable financing route” to acquire SsangYong.