Stocks Related to Ssangyong Motor Acquisition 'Volatile'... Ssangbangwool Group Shares Hit Upper Limit

[Asia Economy Reporter Lee Jung-yoon] Related stocks are experiencing wild fluctuations during the sale process of Ssangyong Motor.

According to the Korea Exchange and industry sources on the 3rd, Ssangyong Motor was sold to Shanghai Automotive in 2004 and to India's Mahindra in 2010, but fell into financial difficulties again and entered rehabilitation proceedings last April after 11 years.

The search for a new owner began at the end of June last year. Eleven companies submitted letters of intent to acquire, but only three participated in the final bidding. The Edison Motors consortium, selected as the preferred bidder, signed the main contract last January but failed to pay the acquisition price within the deadline and was notified of contract termination on the 28th of last month. Since then, Ssangbangwool Group announced on the 1st of this month that it is reviewing the acquisition of Ssangyong Motor to strengthen business competitiveness and enhance corporate value.

Listed companies under Ssangbangwool Group, including Ssangbangwool, Vivian, Mirae Industry, Gwangrim, Nanos, and IOK, all surged to the daily limit on the stock market on the 1st of this month. Gwangrim, a special-purpose vehicle manufacturer, stated in a disclosure response after market close that it is reviewing the acquisition of Ssangyong Motor.

Edison EV plunged to the lower limit on the 28th of last month following the news of the failed acquisition. Trading was also suspended after receiving a disclaimer of opinion on last year's financial statements. The stock price of U&AI (now Edison Inno), where Edison EV has been the largest shareholder since February, surged more than fivefold from the 5,000 won range to 27,500 won in less than a month, then plummeted to around 11,000 won due to the failed acquisition of Ssangyong Motor.