[Featured Stock] Ssangbangwool Surges on Expectations for Ssangyong Motor Acquisition Bid

[Asia Economy Reporter Hwang Junho] The stock price of Ssangbangwool Group, which is attempting to acquire Ssangyong Motor, has been on the rise since the early trading hours.

As of 9:35 a.m. on the 20th, Ssangbangwool is trading at 3,815 KRW, up 17.40%. Along with this, Ssangbangwool affiliate Gwangrim is also trading at 3,345 KRW, up 13.97% compared to the previous trading day.

The rise in these stocks appears to be due to expectations following the news on the 18th that the Ssangbangwool Group Gwangrim consortium submitted a letter of intent (LOI) to EY Hanyoung Accounting Corporation, the lead manager for the sale of Ssangyong Motor.

According to related industry sources, Ssangbangwool Group has appointed Ichon Accounting Corporation as the lead manager for the acquisition of Ssangyong Motor and Daeryuk Aju as the legal advisor.

Currently, besides Ssangbangwool, KG Group, Pavilion PE, and ELBNT are also bidding to acquire Ssangyong Motor. Ssangyong Motor is pursuing a resale through a stalking horse method after the merger and acquisition (M&A) with the Edison Motors consortium fell through.

If a buyer is finally selected during the first half of this year, Ssangyong Motor is expected to sign an investment contract in July and submit a rehabilitation plan to the Seoul Bankruptcy Court.