[Asia Economy Reporter Ki-min Lee] Ssangyong Motor, currently undergoing corporate rehabilitation procedures, plans to conduct a public bidding to find a new owner by the end of this month. While there are expectations that previously unknown companies from the United States and China will join the acquisition battle, the already disclosed acquisition candidates are promoting their strategies to turn Ssangyong Motor into a profitable company after rehabilitation.
According to industry sources on the 9th, the public bidding for the sale of Ssangyong Motor is scheduled to take place at the end of May. Although the sales agent has not yet been decided, it is highly likely that the investigator, Han Young Accounting Corporation, will take on the role. The court plans to announce the sale immediately after selecting the sales agent.
Additionally, HAAH Automotive from the United States, which was the previous preferred negotiator, is also expected to participate in the bidding. Domestic candidates such as electric vehicle companies Edison Motors and K-pop Motors, as well as the private equity fund Park Seok-jeon & Company, are actively pursuing the acquisition of Ssangyong Motor. According to the industry, one company each from the U.S. and China is reportedly showing interest in acquiring Ssangyong Motor.
The companies that have already expressed their intention to acquire Ssangyong Motor are presenting their visions for the acquisition and monitoring public opinion. For instance, Kang Young-kwon, chairman of Edison Motors, stated in interviews with the media, "I am confident that we can make Ssangyong Motor profitable within five years," and added, "If we apply electric vehicle technology to Ssangyong Motor, production requests will come from various places." Edison Motors has revealed a concrete plan to form a consortium and raise an investment fund of approximately 300 billion KRW.
K-pop Motors and the private equity fund Park Seok-jeon & Company signed a strategic business partnership agreement (MOU) on the 22nd of last month to explore funding and rehabilitation plans for acquiring Ssangyong Motor. Recently, they announced plans to accelerate a project to convert existing passenger cars into electric vehicles in collaboration with national research institutes once the acquisition is confirmed. They also plan to convert small and medium-sized ships into electric fishing and cargo vessels, and to produce electric wing-in-ground effect vehicles and light aircraft that can travel both by sea and air. Furthermore, K-pop Motors intends to raise the necessary 3.8 trillion KRW for all plans related to the acquisition through the Nasdaq and New York Stock Exchange markets.
HAAH plans to acquire Ssangyong Motor shares by raising about 280 billion KRW from financial investors and others, and aims to semi-knock down (CKD) produce over 100,000 units by 2023 for sale overseas, including in the United States.
An industry insider predicted, "Once the public bidding announcement for Ssangyong Motor is made, more companies interested in acquisition and related plans will emerge."
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