SsangYong Motor sold for $255 million

gupta_chd · 10th January 2022, 23:14

https://www.autocarpro.in/news-inter...-million-80840

Mahindra & Mahindra may look to start the new year with some positive news for the debt-ridden South Korean SsangYong Motor Company. As per a Reuters report, a consortium led by South Korean electric carmaker Edison Motors has agreed to acquire debt-ridden SsangYong Motor for 305 billion won ($254.65 million / Rs 1,887 crore).

The Korean carmaker has been burdened with high debt and its vehicle sales last year fell to 84,496 units down about 21% from a year earlier, a regulatory filing from the automaker showed.

The automaker reported a January-September 2021 operating loss of 238 billion won (Rs 1,473 crore) from revenue of 1.8 trillion won (Rs 11,140 crore).

SsangYong has been under court receivership since April in an attempt to rehabilitate the carmaker after majority owner Mahindra and Mahindra failed to secure a buyer. Mahindra owns about 75% stake in SsangYong as at the end of September and has been looking for a buyer for all or most of its stake, which it bought when the South Korean automaker was near-bankruptcy in 2010.

Livnletcarsliv · 11th January 2022, 15:29

This indeed is good and positive news for M&M and the Indian auto industry. Hope M&M is able to bring in more revolutionary models with its full focus now.

tbppjpr · 11th January 2022, 16:06

So what will happen to the future successors of XUV series monocoque body vehicles which are either rebranded Ssangyong models or based on them?

Will M&M be able to continue producing and selling such vehicles without any dispute? They already have long history of having licensing disputes with their previous partners like Jeep.

RahulNagaraj · 29th March 2022, 15:53

Ssangyong Motors back on sale as Edison Motors led consortium fails to pay up

South-Korean car brand Ssangyong Motors has announced that its deal with the consortium led by Edison Motors has been called-off after the latter failed to pay up.

Back in January 2022, the company made a deal to sell its controlling stake to a consortium led by Edison Motors. They had agreed to buy the debt-ridden brand from Mahindra & Mahindra for a total of US$ 255 million.

SsangYong Motor sold for 5 million-ssangyongkorandoemotionsuv-1.jpg

Edison Motors was able to pay only around US$30.5 million, which is 10% of the acquisition cost. The company was ordered to pay the balance amount (US$ 223.8 million) by the Seoul Bankruptcy Court before March 25 to acquire Ssangyong. However, the consortium was not able to raise enough funds, especially after the withdrawal of Keystone & KCGI to make the payment on time, resulting in the termination of the deal between the companies.

Ssangyong Motors has been under court receivership since April 2021, when Mahindra & Mahindra failed to secure a buyer for the company. The Indian car brand had bought a 75% majority stake in the South Korean brand back in 2010.

Source: ET Auto

volkman10 · 30th August 2022, 18:48

SsangYong saved.

After years of uncertainty, the saga surrounding the ownership of SsangYong looks like it’s finally been resolved.

A consortium led by Korean chemical company KG Group was approved last week by the Korean Fair-Trade Commission and the Seoul Bankruptcy Court as the new owners.

KG Group will acquire a 61 per cent stake in SsangYong Motor at 950 billion won.

Link

10th January 2022, 23:14	#1
gupta_chd BHPian Join Date: Nov 2009 Location: Chandigarh Posts: 316 Thanked: 407 Times	SsangYong Motor sold for $255 million https://www.autocarpro.in/news-inter...-million-80840 Mahindra & Mahindra may look to start the new year with some positive news for the debt-ridden South Korean SsangYong Motor Company. As per a Reuters report, a consortium led by South Korean electric carmaker Edison Motors has agreed to acquire debt-ridden SsangYong Motor for 305 billion won ($254.65 million / Rs 1,887 crore). The Korean carmaker has been burdened with high debt and its vehicle sales last year fell to 84,496 units down about 21% from a year earlier, a regulatory filing from the automaker showed. The automaker reported a January-September 2021 operating loss of 238 billion won (Rs 1,473 crore) from revenue of 1.8 trillion won (Rs 11,140 crore). SsangYong has been under court receivership since April in an attempt to rehabilitate the carmaker after majority owner Mahindra and Mahindra failed to secure a buyer. Mahindra owns about 75% stake in SsangYong as at the end of September and has been looking for a buyer for all or most of its stake, which it bought when the South Korean automaker was near-bankruptcy in 2010.
	(7) Thanks

11th January 2022, 15:29	#2
Livnletcarsliv BHPian Join Date: Feb 2021 Location: TN66/TN14 Posts: 908 Thanked: 2,229 Times	Re: SsangYong Motor sold for $255 million This indeed is good and positive news for M&M and the Indian auto industry. Hope M&M is able to bring in more revolutionary models with its full focus now.
	() Thanks

11th January 2022, 16:06	#3
tbppjpr BHPian Join Date: Nov 2011 Location: India Posts: 916 Thanked: 2,130 Times	Re: SsangYong Motor sold for $255 million So what will happen to the future successors of XUV series monocoque body vehicles which are either rebranded Ssangyong models or based on them? Will M&M be able to continue producing and selling such vehicles without any dispute? They already have long history of having licensing disputes with their previous partners like Jeep.
	() Thanks

29th March 2022, 15:53	#4
RahulNagaraj Senior - BHPian Join Date: Mar 2021 Location: Bangalore Posts: 2,526 Thanked: 24,020 Times	Re: SsangYong Motor sold for $255 million Ssangyong Motors back on sale as Edison Motors led consortium fails to pay up South-Korean car brand Ssangyong Motors has announced that its deal with the consortium led by Edison Motors has been called-off after the latter failed to pay up. Back in January 2022, the company made a deal to sell its controlling stake to a consortium led by Edison Motors. They had agreed to buy the debt-ridden brand from Mahindra & Mahindra for a total of US$ 255 million. Edison Motors was able to pay only around US$30.5 million, which is 10% of the acquisition cost. The company was ordered to pay the balance amount (US$ 223.8 million) by the Seoul Bankruptcy Court before March 25 to acquire Ssangyong. However, the consortium was not able to raise enough funds, especially after the withdrawal of Keystone & KCGI to make the payment on time, resulting in the termination of the deal between the companies. Ssangyong Motors has been under court receivership since April 2021, when Mahindra & Mahindra failed to secure a buyer for the company. The Indian car brand had bought a 75% majority stake in the South Korean brand back in 2010. Source: ET Auto
	(3) Thanks

30th August 2022, 18:48	#5
volkman10 Distinguished - BHPian Join Date: Dec 2010 Location: -- Posts: 24,491 Thanked: 72,997 Times View My Garage	Re: SsangYong Motor sold for $255 million SsangYong saved. After years of uncertainty, the saga surrounding the ownership of SsangYong looks like it’s finally been resolved. A consortium led by Korean chemical company KG Group was approved last week by the Korean Fair-Trade Commission and the Seoul Bankruptcy Court as the new owners. KG Group will acquire a 61 per cent stake in SsangYong Motor at 950 billion won. Link
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