South Korea's SsangYong sold for $255m to local consortium

10 January 2022 - 10:55 By Reuters
A SsangYong Musso Saracen at the Commercial Vehicle Show in September /2021 in Birmingham, England.
A SsangYong Musso Saracen at the Commercial Vehicle Show in September /2021 in Birmingham, England.
Image: John Keeble/Getty Images

A consortium led by South Korean electric carmaker Edison Motors Co has agreed to acquire debt-ridden SsangYong Motor Co Ltd for 305-billion won (roughly $254.65m or R3,986,736,737), SsangYong Motor said on Monday.

SsangYong is burdened with high debt and its vehicle sales last year fell to 84,496, down about 21% from a year earlier, a regulatory filing from the automaker showed.

The automaker reported a January-September 2021 operating loss of 238-billion won (roughly R3,110,990,820) from revenue of 1.8-trillion won (roughly R23,534,642,898).

SsangYong has been under court receivership since April in an attempt to rehabilitate the carmaker after majority owner Mahindra and Mahindra failed to secure a buyer.

Indian automaker Mahindra, which owned about 75% of SsangYong as at the end of September, has been looking for a buyer for all or most of its stake which it bought when the South Korean automaker was near bankruptcy in 2010.


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