Ssangbangwool Joins Ssangyong Motor Acquisition Battle... Final Buyer Decided Next Week

Two-Way Battle with KG Consortium Holding Preemptive Purchase Rights

Ssangyong Motor Pyeongtaek Delivery Center, Pyeongtaek-si, Gyeonggi-do

[Asia Economy Reporter Choi Dae-yeol] Ssangbangwool Group has entered the bidding for the acquisition of Ssangyong Motor. It will compete against KG Group, which was previously designated as the prospective buyer last month.

According to industry sources on the 24th, the Kwangrim Consortium (Ssangbangwool Group) submitted a bid proposal to EY Han Young Accounting Corporation, the sales agent, this afternoon. Ssangbangwool had indirectly or directly expressed its intention to acquire, but there were speculations that participation might be uncertain due to a prosecution raid the day before.

Ssangyong Motor is conducting a resale through a stalking horse method, where after terminating the investment contract with Edison Motors, it signed a conditional investment contract with the prospective buyer and is selecting the final buyer through an open bidding process. The KG Consortium was designated as the prospective buyer and signed a conditional investment contract last month.

KG Tower, Jung-gu, Seoul

The court and the sales agent will review the acquisition conditions submitted by Ssangbangwool today and notify KG, which holds the right of first refusal, allowing them to decide on acquisition by the 28th. In the competition earlier this month, Ssangbangwool reportedly offered the highest bid of 375 billion KRW. However, KG Consortium received a higher evaluation for additional operating funds, securing the right of first refusal.

On this day, Ssangbangwool reportedly offered an acquisition price close to 400 billion KRW and secured financial investors as well. The industry estimates that the total acquisition amount may have approached 1 trillion KRW. Since there was a previous disruption over the sale price, the court is expected to closely examine the financial capability of the prospective buyer. KG is actively pursuing the acquisition, securing 500 billion KRW by selling affiliates.

Even if Ssangbangwool's acquisition conditions are better than those of the KG Consortium, KG holds the decisive power over whether to proceed with the acquisition. If KG agrees to Ssangbangwool Group's acquisition terms, Ssangbangwool can become the final prospective buyer; if KG declines, Ssangyong will enter negotiations with Ssangbangwool again.