HAAH preparing stake bid for SsangYong – reports | Automotive Industry News
US auto distribution firm HAAH Automotive Holdings is getting ready to post an provide to commit in SsangYong Motor, according to experiences.
Studies propose that HAAH executives have visited SsangYong’s Pyeontaek plant in South Korea as aspect of the thanks diligence course of action that commonly precedes a official provide.
SsangYong Motor’s key stakeholder, Mahindra Group, has introduced it will decrease its stake from the latest 75 percent to less than fifty percent, and that it is inclined to give up its top shareholder posture if it finds a new trader.
Studies also propose that if Mahindra’s stake goes under fifty%, that could mean SsangYong goes into personal bankruptcy as it has taken financial loans conditional on Mahindra remaining in command.
The Korea Herald noted that some analysts imagine HAAH Automotive does not have the resources to receive adequate inventory to turn out to be the key shareholder, but could be supported by China-based mostly Chery Vehicle.
HAAH could be eyeing chances to offer SsangYong SUVs in the US.
Ssangyong documented its 13th consecutive quarter of economic losses in the initially quarter of 2020, prompting Mahindra & Mahindra to inject KRW40bn (US$33m) into the firm to assistance it keep afloat by the worldwide pandemic.
But this was significantly limited of the KRW230bn (US$187m) in contemporary capital Mahindra experienced beforehand reported was wanted to return Ssangyong to profitability in excess of a interval of three several years.
A Mahindra spokesperson confirmed “it is hard for us to locate a new trader in SsangYong if we preserve our vast majority stake. So Mahindra has agreed to decrease its stake to under fifty% to encourage much more buyers”.