[Featured Stock] Ssangbangwool Surges Over 16% on News of Letter of Intent to Acquire Ssangyong Motor

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Ssangbangwool Group's stock price is showing strength in early trading following news that it submitted a letter of intent to acquire Ssangyong Motor, whose public bidding closes on the 9th.

As of 9:31 a.m. today, Ssangbangwool is trading at 768 won on the Korea Exchange, up 16.01% from the previous trading day.

It is reported that Ssangbangwool submitted the letter of intent to EY Han Young, the lead manager for the sale of Ssangyong Motor.

Ssangyong Motor is currently undergoing resale through a 'Stalking Horse' method, where a conditional investment contract is signed with a prospective buyer and the final acquirer is determined through a public bidding process.

If there are no bidders or letter of intent submitters in this bidding, or if no bidder offers better terms than the KG Consortium's acquisition proposal, the KG Consortium is expected to be selected as the final acquirer with the approval of the rehabilitation court.