Edison Motors is preferred bidder for SsangYong Motor
SsangYong Motor said Wednesday that it has chosen the consortium led by the electric truck maker as the preferred bidder and will ask Seoul Bankruptcy Court to approve the decision.
Edison Motors-led consortium includes Korea Corporate Governance Improvement (KCGI) fund, Keystone Private Equity and Semisysco. It is reported that the consortium submitted 200 billion won ($170 million) as the acquisition price for the beleaguered carmaker.
Another consortium lead by Korean electric vehicle company EL B&T, which reportedly submitted a 500 billion won bid, was expected to compete with Edison Motors, but was ruled out because it "was seen as lacking financing capability," according to Seoul Bankruptcy Court Wednesday.
“SsangYong Motor and the manager of the deal [EY Hanyong] evaluated the acquisition price as well as the bidder’s determination and capability to stably run SsangYong Motor’s business after the acquisition,” SsangYong Motor said in a statement Wednesday.
Edison Motors is an electric truck manufacturer based in Hamyang, South Gyeongsang. Its revenue was 89.8 billion won last year and its operating profit was 2.8 billion won.
Edison Motors was one of the first companies that stepped forward to salvage SsangYong Motor since it was placed under court receivership in April.
SsangYong Motor plans to sign a memorandum of understanding with Edison Motors this month and finalize the details of the deal including the price after November.
BY JIN EUN-SOO [email@example.com]