The takeover deal set to rescue SsangYong, inked with the Edison Motors Consortium earlier this year, has been called off. Edison Motors was expected to deposit the balance for its takeover by 25 March — five business days before the date of the creditors’ meeting — but it has failed to meet this deadline.

After concluding the acquisition contract with Edison, SsangYong submitted a rehabilitation plan to the court on 25 February 2022. The plan included the repayment of the rehabilitation claims and changes to the rights of shareholders on the receipt of full payment for the takeover. The court set the date of the creditors’ meeting as 1 April 2022 for the hearing and resolution of the plan.

With the termination of the investment contract with Edison, SsangYong will look for a new investor and submit a new plan to the court.

The condition of SsangYong has improved since the acquisition process began in June 2021, after launching the new J100 model and progressing towards marketing electric vehicles. To that end, the first EV E100 was launched in September 2021, with the new U100 model on schedule for the second half of next year, thanks to a strategic alliance with EV company BYD.

An additional 30,000 vehicles will be exported annually, resulting from the construction of a CKD plant in Saudi Arabia, with production starting in 2023. A significant increase in export orders from overseas markets accounts for more than 13,000 backorders, meaning that the business will soon be able to resume two production shifts.

Yong-won Jung, the receiver, commented: “Such an improvement in business conditions increases the company’s future value and attracts more competitive acquirers. We will make every effort to secure a re-sale in the shortest time possible, not only to alleviate the concerns of our partners, but also to build a firm foundation for the company’s long-term growth.”

Phil Huff
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