According to information received from sources, Duke Hale, founder of HAAH Automotive Holdings, said that HAAH is the optimal company to acquire financially troubled Ssangyong, and will submit an LoI by Friday.
Ssangyong Motor
The head of US-based vehicle importer HAAH Automotive Holdings today informed that the company is ready to submit its letter of intent (LoI) next week to acquire debt-ridden Ssangyong Motor Company.
SsangYong-owned Indian company Mahindra & Mahindra Ltd was in talks with HAAH since last year to sell its majority stake in the Korean unit. This is part of the company’s global restructuring plan amid the COVID epidemic. Mahindra acquired a 70 per cent stake in Ssangyong in 2011 for Won 523 billion and now holds 74.65 per cent stake in the SUV-focused carmaker.
According to information received from sources, Duke Hale, founder of HAAH Automotive Holdings, said that HAAH is the optimal company to acquire financially troubled Ssangyong, and will submit an LoI by Friday.
According to the Yonhap news agency report, HAAH was expected to submit its LoI to the Seoul Bankruptcy Court by March, but did not send the documents, raising doubts about its intention to invest in SsangYong. With regard to the failure to submit the LOI, the HAAH chief said that the company needs more time to look at the financial statements of SsangYong before making an investment decision.
He added that if HAAH is successful in acquiring Ssangyong, the California-based car importer plans to bring Ssangyong’s SUV models and pick-up trucks to the US and Canada. SsangYong is planning to get the LoI from interested investors by Friday in the auction to find its new owner.
China-based SAIC Motor acquired a 51 percent stake in Ssangyong in 2004. But in the wake of the 2008-09 global financial crisis, the carmaker gave up its control in 2009. SsangYong auditor KPMG Samjong Accounting Corp declined to comment on the carmaker’s annual financial statements for the year 2020. As such, if its accounting firm refuses to provide an opinion on the company’s annual performance for the next year after a period of one year, SsangYong may be de-listed.
Also read:
Indians made a shocking disclosure in the survey about electric vehicles, 90 percent of the customers think so
Get ready! Mercedes-Benz Citan electric version will be launched on August 25, know what will be special in it
.