[Asia Economy Reporter Lee Seon-ae]Ssangbangwool is showing a sharp decline during trading following the news of KB Securities withdrawing its plan to raise 450 billion KRW in funds.
As of 2:56 PM on the 12th, Ssangbangwool is trading at 793 KRW, down 16.53%.
On the same day, KB Securities decided to withdraw the fund-raising plan through an executive meeting of the responsible department. Previously, KB Securities had submitted a Letter of Intent (LOI) to provide half of the 450 billion KRW in funds to Ssangbangwool (Gwangrim Consortium), which is pursuing the acquisition of Ssangyong Motor.
A KB Securities official stated, "During further internal discussions, we judged that the risk could expand contrary to initial expectations, so we proactively communicated our intention to withdraw. The LOI we submitted does not have legal binding force, and its submission was merely an initial procedural step proposing the deal," emphasizing this point.
Accordingly, the market expects that there will inevitably be setbacks in Ssangbangwool's efforts to acquire Ssangyong Motor.
Meanwhile, since Ssangbangwool entered the bidding for Ssangyong Motor, its stock price has experienced rapid fluctuations in a short period, resulting in its designation as an investment warning stock by the Korea Exchange Market Surveillance Committee.
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