Kanglim consortium submits a bid for SsangYong Motor

SsangYong Motor's Pyeongtaek plant in Gyeonggi [NEWS1]

A Kanglim-led consortium is bidding for SsangYong Motor, bringing the total number of bidders to two.

The Kosdaq-listed equipment manufacturer has sent a letter of intent to buy the beleaguered carmaker to EY Hanyoung, which is managing the deal.

Bids were accepted through Thursday, and only the Kanglim group submitted a bid.

Kosdaq-listed KG ETS is the existing bidder as the result of an earlier process concluded in May to choose a "stalking horse," which is picked to set a floor price for others.

The two consortia have until June 24 to submit their acquisition proposals, which will include the details about the bidding prices.

SsangYong aims to sign the formal deal with the final buyer in June and submit its rehabilitation plan to the Seoul Bankruptcy Court in August.

The Kanglim-led consortium said it plans to offer more than the 380 billion won ($303 million) it offered earlier this year in the contest to choose the stalking horse.

KG ETS is an energy company 47 percent owned by KG Chemical.

KG Chemical traces its roots back to Gyeonggi Chemical, established in 1954 as Korea's first fertilizer manufacturer. Gyeonggi Chemical is now called KG Chemical.

Kanglim is a fire and tanker truck manufacturer with a 12.4 percent share of Ssangbangwool. Ssangbangwool's plan is to have SsangYong Motor, which has yet to make the transition to electric vehicles (EVs), and Kanglim work together.

The acquisition of SsangYong by a local consortium led by Edison Motors fell apart earlier in the year as the Korean electric bus manufacturer couldn't pay up.

Kanglim shares soared 30 percent to 2,565 won Thursday, while KG ETS shares jumped 11.4 percent to 19,100 won. Ssangbangwool surged 30 percent.

BY SARAH CHEA [chea.sarah@joongang.co.kr]