Global Sae-A completes acquisition of Ssangyong E&C

Global Sae-A and Ssangyong E&C buildings

Ssangyong Engineering & Construction Co. approved new directors appointed by Global Sae-A Group, which is now the largest shareholder of the builder, during an extraordinary meeting of shareholders held on Thursday, completing their M&A transaction.

The approval comes after Global Sae-A signed a share purchase agreement to acquire Ssangyong E&C from the Investment Corporation of Dubai in October and completed payment following regulatory and anti-trust clearances.

Global Sae-A plans to raise 150 billion won ($118.2 million) by issuing new shares next month to control about 90 percent of Ssangyong E&C.

Global Sae-A pushed for its acquisition of Ssangyong E&C under its five-year plan called VISION 2025 to achieve the goals of 10 trillion won ($7.88 billion) in sales and 1 trillion won in operating profit by 2025 with a focus on textile and fashion, construction, paper and packaging, food and beverage, and culture and arts.

Global Sae-A said the acquisition will add further diversity and synergy to its business, allowing Ssangyong E&C to develop overseas markets through projects ordered by Global Sae-A affiliates related to national infrastructure and urban development projects in Latin America.

After the company sells the new shares next month, Ssangyong E&C’s debt ratio is expected to decrease to the mid-200 percent range from the 600 percent range last year.