June. 9. 2022
Korean underwear company Ssangbangwool submits letter of intent for SsangYong Motor
|SsangYong Motor Headquarters in Pyeongtaek, Gyeonggi Province / Courtesy of SsangYong Motor|
Korean underwear company Ssangbangwool said on Thursday it had submitted a letter of intent (LOI) to acquire SsangYong Motor with an auction scheduled for later this month to find a new investor.
SsangYong’s senior manager, accounting firm EY Hanyoung, received letters of intent from companies interested in SsangYong by 3 p.m. Thursday.
“We already submitted our letter of intent on Tuesday and expect to participate in the auction on June 24,” a Ssangbangwool spokeswoman said by phone.
SsangYong plans to select the last bidder in the stalking horse bid in which the preliminary bidder suggests their price for SsangYong before the auction, and the other bidders submit their prices during the auction.
If a company submits a price higher than the price of the bullying horse, SsangYong will ask the bullying horse if it can pay the higher price to buy the automaker.
Last month, SsangYong selected a local consortium led by steel chemicals company KG Group as the preliminary bidder for SsangYong, which has been in receivership since April 15, 2021, after its Indian parent company Mahindra & Mahindra failed to failed to attract an investor amid the COVID-19 pandemic and deteriorating financial condition.
Last month, four companies – KG Group, Pavilion PE, electrical parts maker EL BT and underwear company Ssangbangwool – competed to become SsangYong’s preliminary bidder in the tender. . KG and Pavilion PE formed a consortium after submitting letters of intent.
SsangYong and EY Hanyoung accepted the KG-led consortium as the preliminary bidder as the consortium beat others in terms of acquisition price, fundraising plans and job guarantee period.
The new auction comes two months after local electric bus maker Edison Motors failed to make full payment of 304.8 billion won ($249 million) for the indebted automaker by the deadline of the March 25.
The court extended the deadline for SsangYong to find a new owner and submit a new restructuring plan by six months until October 15.
SsangYong aims to select a preferred bidder in late June, sign a deal in early July, submit its rehabilitation plan to court in late July and obtain court approval for its restructuring plan in late August.
Chinese company SAIC Motor acquired a 51% stake in SsangYong in 2004, but relinquished its control of the automaker in 2009 following the global financial crisis.
In 2011, Mahindra acquired a 70% stake in SsangYong for 523 billion won and now owns a 74.65% stake in the automaker.
The SsangYong range includes the Tivoli, Korando, Rexton and Rexton Sports SUVs.
SsangYong has announced that it will receive pre-orders for the all-new Torres SUV, developed under the project name J100, starting Monday. (Yonhap)