US motor vehicle distribution firm HAAH Automotive Holdings is getting ready to post an provide to spend in SsangYong Motor, in accordance to experiences.
Reviews counsel that HAAH executives have frequented SsangYong’s Pyeontaek plant in South Korea as component of the because of diligence approach that ordinarily precedes a formal provide.
SsangYong Motor’s important stakeholder, Mahindra Group, has declared it will reduce its stake from the present seventy five p.c to considerably less than 50 p.c, and that it is ready to give up its best shareholder placement if it finds a new investor.
Reviews also counsel that if Mahindra’s stake goes down below 50%, that could necessarily mean SsangYong goes into individual bankruptcy as it has taken financial loans conditional on Mahindra remaining in manage.
The Korea Herald noted that some analysts believe that HAAH Automotive does not have the money to receive ample stock to turn out to be the important shareholder, but could be supported by China-dependent Chery Car.
HAAH could be eyeing possibilities to provide SsangYong SUVs in the US.
Ssangyong reported its thirteenth consecutive quarter of monetary losses in the to start with quarter of 2020, prompting Mahindra & Mahindra to inject KRW40bn (US$33m) into the firm to support it continue to be afloat by means of the world-wide pandemic.
But this was far limited of the KRW230bn (US$187m) in fresh capital Mahindra had formerly said was essential to return Ssangyong to profitability in excess of a period of 3 several years.
A Mahindra spokesperson confirmed “it is tough for us to uncover a new investor in SsangYong if we hold our majority stake. So Mahindra has agreed to reduce its stake to down below 50% to motivate much more buyers”.