SEOUL — South Korean activity utility auto maker SsangYong is wanting for a potential customer right after India’s Mahindra and Mahindra explained it could give up its the vast majority stake in the struggling corporation. SsangYong has picked an advisor to faucet markets for a new investor, a spokesman for the South Korean corporation explained on Friday.
Shares in the carmaker closed up thirty% right after South Korean media, citing unnamed resources, explained on Friday that China’s Geely and BYD may well be fascinated in SsangYong, which is seventy four.65% owned by Mahindra and Mahindra.
A representative for Geely, however, explained the carmaker has no strategy to participate in any bidding for SsangYong. Electric powered auto maker BYD declined to remark.
South Korean media explained SsangYong experienced picked Samsung Securities to faucet the current market for fascination, doing the job with its international strategic partner Rothschild. Samsung Securities and Rothschild declined to remark and SsangYong would not confirm the identify of its advisor.
SsangYong is burdened with superior personal debt and claimed its 13th consecutive quarterly working loss in January-March. It endured from sluggish income even in advance of the distribute of COVID-19 due to tough levels of competition in the sporting activities-utility auto (SUV) current market.
An govt at Mahindra explained very last 7 days that the Indian corporation was willing to allow go of its possession stake in SsangYong.
The stake at is valued at 332 billion received ($274.fifty nine million)as of Friday’s inventory current market closing.