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Another private equity fund joins consortium to acquire SsangYong Motor

All News 09:54 August 09, 2021

SEOUL, Aug. 9 (Yonhap) -- Another homegrown equity fund renowned for its failed attempt to take over the holding company of the country's largest airline last year has joined a consortium to acquire SsangYong Motor Co., industry sources said Monday.

The Korea Corporate Governance Improvement (KCGI) fund came aboard the consortium that Edison Motors Co. formed with the Keystone private equity fund and two other financial investors to buy the debt-ridden carmaker at an upcoming auction, according to the sources.

On July 30, nine companies, including the Edison-led consortium, U.S.-based Cardinal One Motors, and SM Group, whose businesses range from construction to auto parts manufacturing, submitted letters of intent to take over SsangYong.

In December, a Seoul court dismissed the injunction filed by the KCGI against Hanjin KAL's stock sales meant to fund its affiliate Korean Air Lines Co.'s takeover of smaller rival Asiana Airlines Inc.

The KCGI brought the issue to the court a month earlier, arguing that the share sale to the designated party will damage the holding firm's shareholder value.

The SUV-focused carmaker and its lead manager EY Hanyoung accounting firm plan to conduct preliminary due diligence on the companies that pass an initial screening process by the end of August. They aim to select a preferred bidder in September.

Analysts said it will take 800 billion won to 1 trillion won (US$700 million-$870 million) to take over the debt-laden SsangYong.

This file photo shows the main gate of SsangYong Motor's Pyeongtaek plant, 70 kilometers south of Seoul. (PHOTO NOT FOR SALE) (Yonhap)

kyongae.choi@yna.co.kr
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