Ssangyong Motor to Sign MOU for Merger and Acquisition with Edison Motors as Early as Next Month 1st

Ssangyong Motor "Consultation period tight... Need 2 more business days"

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] Ssangyong Motor announced on the 28th that it has submitted an 'Application for Extension Approval of the MOU Signing Period, etc.' to the Seoul Bankruptcy Court, requesting an extension of the memorandum of understanding (MOU) signing period with the preferred negotiation partner, Edison Motors Consortium.

If the court approves the extension of the MOU signing period on this day, Ssangyong Motor and Edison Motors Consortium are scheduled to sign the MOU on the 1st of next month.

Although the MOU must be signed within three business days from the notification of the preferred negotiation partner on the 25th, Ssangyong Motor's position is that two more business days are needed due to the tight negotiation period.

Once Ssangyong Motor and Edison Motors sign the MOU on the 1st of next month, they plan to conduct about two weeks of due diligence and proceed with the main contract negotiations regarding the acquisition price and key contract terms.

Earlier, on the 20th, the court selected Edison Motors Consortium as the preferred negotiation partner after hearing opinions from Ssangyong Motor and the sales lead manager EY Han Young Accounting Corporation.

Edison Motors, a domestic electric bus company, plans for Semisysco and TG Investment to take charge of operations after acquiring Ssangyong Motor, while private equity firms Keystone Private Equity and Kangsungboo Fund (KCGI) will enter as financial investors (FI) to initiate the normalization process of Ssangyong Motor.

The Edison Motors Consortium intends to increase the number of eco-friendly vehicle models to 10 electric vehicles by next year and 30 models by 2030, aiming to transform Ssangyong Motor into an electric vehicle company.