[Special Stock] Ssangyong Motor Formal Acquisition Intent Letter Submission Boosts Ssangbangwool Group Shares

[Image source=Yonhap News]

[Asia Economy Reporter Myung-hwan Lee] Stocks related to Ssangbangwool Group are showing strong performance on the morning of the 19th. This is presumed to be due to the consortium formed by its affiliate Gwanglim submitting a formal letter of intent to acquire Ssangyong Motor the previous day.

As of 10:05 AM today, Ssangbangwool is trading at 884 KRW, up 18.34% (137 KRW) compared to the previous trading day. Gwanglim, a special-purpose vehicle manufacturing affiliate leading the acquisition, is up 17.26%, and KH Philux, which formed a consortium with Gwanglim, is also rising by 6.13%. Other affiliates, IOK (6.13%) and Vivian (4.34%), are also showing strong performance.

This reflects the market's expectations following Ssangbangwool Group's submission of a formal letter of intent to acquire Ssangyong Motor the previous day. According to industry sources, EY Han Young Accounting Corporation, the sales agent for Ssangyong Motor, closed the submission of letters of intent yesterday. Ssangbangwool Group submitted the letter of intent through a consortium formed by its special-purpose vehicle manufacturing affiliate Gwanglim and KH Philux. Although KB Securities withdrew its plan to participate in financing the acquisition of Ssangyong Motor, Ssangbangwool Group maintains that there is no problem with funding.

After the merger and acquisition (M&A) with the Edison Motors consortium fell through, Ssangyong Motor is pursuing a resale using the "Stalking Horse" method, which involves signing a conditional investment contract with a prospective buyer and confirming the acquirer through a public bidding process. Companies that submitted letters of intent plan to conduct preliminary due diligence on Ssangyong Motor from the 19th until the 4th of next month, after which they will decide whether to proceed with the final bid.