SsangYong has selected the KG Consortium as its final bidder to acquire the company, as approved by the Seoul Bankruptcy Court.
SsangYong and Ernst & Young (EY) Korea, the appointed assessor, decided to promote the resale of the business following the earlier cancellation of the agreement reached with Edison Motors Consortium. SsangYong and EY selected the KG Consortium as their preferred bidder, and a conditional investment contract was signed in May.
Following the thorough evaluation of the acquisition price, fundraising plans, and the certainty of financing, the KG Consortium
was selected as the final bidder. SsangYong will now prepare a rehabilitation plan based on the conditional investment agreement and submit this to the court before the end of July. After this, a meeting of creditors and shareholders will be held by early September for their ratification.
Yong-won Chung, the receiver, commented: “We are establishing a strong foundation for the successful corporate rehabilitation of SsangYong, both through the selection of the final bidder to take the business forward, and with the number of pre-orders already placed for the recently announced Torres SUV which have already exceeded 25,000 units.
“Through this finally successful merger & acquisition, the company will be able to shorten the turnaround time by expanding its line-up of eco-cars, and preparing itself for renewed competitiveness in the global marketplace.”
The KG Consortium comprises special interest companies, including KG Mobility, KG ETS, KG Steel, KG Inicis, KG Mobilians, and private equity funds Cactus PE and Pavilion PE.
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