SsangYong names new owner following takeover turmoil

SsangYong has announced KG Consortium could be the company’s new owner, but the deal has yet to be sealed.

According to a statement from SsangYong’s head office in South Korea, it intended to sign a conditional investment contract with the chemical and steel company late last month, though it’s understood this was delayed by authorities.

Clothing manufacturer Ssangbangwool (SBW) is also understood to be bidding for the company, submitting a letter of intent to acquire the carmaker before a 9 June cutoff – claiming to be the only company to meet the deadline set by the court-appointed administrator.

While the exact figures aren’t known, local media reports the bid from KG is three times the offer made by Edison Motors in late 2021.

Edison Motors had put forward an offer of approximately $US260 million ($AU350m) according to Nikkei Asia, before reducing its bid in January 2022. By March, the deal had been voided and SsangYong pocketed the $US25 million ($AU33.2m) deposit.

It’s been a turbulent period for the manufacturer – at the start of June, SsangYong’s UK arm announced it had returned to profitability for the first time in seven years. Less than a fortnight later, SsangYong UK Executive Chairman Jim Tyrrell died suddenly from a suspected heart attack.

Earlier this week, SsangYong revealed the Torres SUV – the first new model from the brand in four years – with expectations it will spawn an all-electric version in the coming years.

Meanwhile, commentators in South Korea remain sceptical as to whether SBW will be able to put together a deal to successfully acquire SsangYong. KG, on the other hand, is understood to be in line to receive a large payment following the sale of one of its subsidiaries, putting it squarely in the front-running.