SsangYong invites contestants to challenge stalking-horse bidder KG consortium

[Photo by MK DB]

SsangYong Motor Co. has invited contestants to challenge the stalking-horse bidder with better acquisition terms in its second attempt to find a new investor after a disappointment with earlier bidder.

SsangYong and its sale advisor EY Hanyoung receive letters of intent on June 2-6. The carmaker will issue new shares and bonds to raise capital through a tender ensured with a stalking-horse bidder.

KG Group-led consortium has been chosen as the stalking-horse bidder and will be confirmed as the preferred bidder to sign the final contract if no one can match its terms.

Ssangbangwool (SBW) Group earlier announced that it will challenge the stalking-horse bidder, suspecting collusion between consortium members. KG consortium consists of its subsidiaries KG Mobility, KG ETS, KG Steel, KG Inicis, KG Mobilians and private equity firms Cactus PE and Pavilion PE.

Contestants who receive a go-ahead will be allowed to conduct due diligence on June 10-21 and submit their final offer until June 24.

SsangYong plans to select a preferred bidder by later this month and sign a final contract by earlier next month. It will hold a congregation in the end of August and seek creditor approval for its rehabilitation plan.

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