Ssangyong Motor, Prospective Buyer 'KG Consortium'... Public Sale to Start in June (Update)

'Stalking Horse' Sale... KG Consortium Effectively Acquirer
Public Sale in June, Final Contract Scheduled for July

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] The new owner of Ssangyong Motor has been identified. The KG Consortium has been selected as the conditional prospective buyer.

On the 13th, Ssangyong Motor announced that the 'KG Consortium' was chosen as the prospective buyer. Following this, the final buyer will be selected through a process involving the signing of a conditional investment contract, a public sale announcement, and the receipt of letters of intent (LOI) related to the public sale.

Effectively, the KG Consortium can be considered the new owner. The resale of Ssangyong Motor is proceeding via the 'stalking horse' method. A stalking horse refers to selecting a prospective buyer, signing a conditional investment contract, and then conducting a public auction. If a new prospective buyer offers a higher price, the initial prospective buyer can match the bid, leading to a competitive auction. The prospective buyer is granted a kind of 'right of first refusal,' so barring any major surprises, the KG Consortium is expected to become the final buyer of Ssangyong Motor.

Ssangyong Motor plans to announce the sale in June and receive LOIs. If all goes well, the main contract will be signed in early July, followed by submitting a rehabilitation plan to the court. It is expected that court approval will be obtained by August at the latest.