The letter of intent to acquire Ssangyong Motor ends today. Participation in K-pop, SM, Edison, etc.

Spread the love

It is known that electric vehicle maker K-pop Motors, electric bus company Edison Motors and SM (Samramidas) group participated in the acquisition of Ssangyong Motor.

According to industry sources on the 30th, K-Pop Motors submitted a letter of intent to take over Ssangyong Motors on the 29th to EY Hanyoung Accounting Corporation, which was in charge of selling Ssangyong Motors.

First, 380 billion won was prepared for the acquisition. If K-Pop Motors is designated as a preferred bidder, it plans to invest 1 trillion won in the second round. After that, the third plan was to normalize Ssangyong Motor by investing 2.4 trillion won in public offerings (including subcontractors) and public stocks. The industry has estimated that the amount of money needed to acquire Ssangyong Motor is between 800 billion won and 1 trillion won, including 390 billion won in public interest bonds.

When submitting a letter of intent to take over, K-Pop Motors CEO Hwang Yo-seop said, “We decided that Ssangyong Motors would need about 3.8 trillion won to normalize, so we prepared 380 billion won, a part of the acquisition fund, first.”

Ssangyong Motor’s acceptance letter of intent is closed today. HAAH Automotive, an American automaker that initially announced that it would accept a letter of intent by this day, is said to have not made any moves yet.

Edison Motors, an electric bus company that was initially expected to participate in the acquisition other than HAAH, is known to have received a letter of intent on the same day with Keystone Private Equity (Keystone PE), a management participation type private equity (PEF) manager.

SM Group also appeared as a participant in the takeover of Ssangyong Motor. According to the investment banking (IB) industry, on this day, SM Group decided to submit a letter of intent to acquire Ssangyong Motor. SM Group is a company that started from Samra Construction, which Chairman Woo Oh-Hyun founded in 1988. It has business areas such as construction, manufacturing, and shipping and has SM Merchant Marine, Daehan Shipping, TKK, and Namseon Aluminum as its core affiliates. SM Group is planning to enter the electric vehicle market in earnest with Namsun Aluminum, specializing in auto parts.

Ssangyong Motor, which is undergoing corporate rehabilitation procedures (statutory management), is currently in the process of M&A before approval of the rehabilitation plan. The company plans to conduct preliminary due diligence next month after closing the acceptance letter and selecting a preferred bidder in September. After that, it was decided to follow the procedures such as due diligence and investment contract.

Leave a Reply