[Special Stock] Ssangyong Motor Acquisition Candidate Selection Approaching, Ssangbangwool-Related Stocks Weakening

[Asia Economy Reporter Lee Myunghwan] On the day before the selection of the prospective buyer for Ssangyong Motor, stocks affiliated with Ssangbangwool Group are collectively declining.

As of 2 PM on the 12th, Ssangbangwool is trading at 747 KRW, down 13.44% (116 KRW) from the previous trading day. Kwanglim, which had stepped forward as the acquisition entity for Ssangyong Motor, is also down 11.90% (370 KRW) to 2,740 KRW compared to the previous day.

Other affiliates such as SBW Life Science (formerly Nanos) (-8.10%), Mirae Industry (-5.75%), and IOK (-5.71%) are also on a downward trend.

According to industry sources, Ssangyong Motor and the selling lead manager EY Han Young Accounting Firm closed the submission of acquisition proposals yesterday. It is known that KG Group, Ssangbangwool Group, and Pavilion Private Equity (PE) participated in the bidding for the conditional prospective buyer of Ssangyong Motor.

Ssangyong Motor plans to select a prospective buyer (with the right of first refusal) using the 'Stalking Horse' method as early as the 13th, based on the acquisition proposals. A conditional investment contract is expected to be signed around next week, followed by the start of a public auction.

KG Group, allied with Pavilion PE, is considered the most likely acquisition candidate. Since the M&A fell through due to Edison Motors' failure to secure acquisition funds, Ssangyong Motor is expected to focus intensively on verifying financial proof. KG Group is expected to secure 500 billion KRW by selling the environmental energy division of its affiliate KG ETS, giving it an edge in capital strength over other acquisition candidates.

The industry expects the acquisition price for Ssangyong Motor to be between 400 billion and 600 billion KRW.