KG Group Submits Preliminary Letter of Intent to Acquire Ssangyong Motor

[Image source=Yonhap News]

[Asia Economy Reporter Lee Myunghwan] KG Group has officially entered the Ssangyong Motor acquisition battle by submitting a preliminary letter of intent.

On the 12th, KG Group announced that it had submitted a preliminary letter of intent to EY Hanyoung, the lead manager for the sale of Ssangyong Motor.

KG Group plans to form a consortium with the private equity fund Cactus Private Equity (PE), which partnered with them during the acquisition of Dongbu Steel, to pursue the acquisition of Ssangyong Motor. KG Group explained, "The next step is to prepare a plan regarding acquisition funds and operational aspects."

KG Group is regarded as the financially strongest candidate among the companies bidding for Ssangyong Motor. Its holding company, KG Chemical, holds approximately 360 billion KRW in cash and cash equivalents. Recently, KG ETS sold its environmental energy division for 500 billion KRW.

KG Group has grown by successively acquiring companies such as Gyeonggi Chemical (now KG Chemical), Korea's first fertilizer company, Inicis (now KG Inicis), Dongbu Steel (now KG Steel), Enerchem, and KFC Korea.

A KG Group official emphasized their competitiveness, citing their experience in improving performance after acquiring several companies, including Dongbu Steel.