[ad_1]
Enter 2021-01-04 12:06 | Revision 2021-01-04 12:24
India’s Mahindra Group, the largest shareholder in Ssangyong Motors, announced that it would complete the sale of its stake to the new owner on the 28th of next month. Ssangyong Motor, which has been pushed to the threshold of business rehabilitation (legal management) procedures, is drawing attention to whether it can drastically avoid this.
However, there are still many mountains to overcome, such as the size of the investment and the length of the loan maturity from whether the actual transaction will be completed. Some observers are cautious that they are under pressure to seek government support.
According to local media such as India Business Today on the 4th, Chairman Pawan Goenka Mahindra said in a videoconference on the 1st (local time) that he was negotiating with a potential investor to sell shares of Ssangyong Motor. “Key Terms Agreement Next Week (Term Sheet) I look forward to finishing the job.”
He said: “There are two months left, and if the deal is closed, things will go back to normal,” he said.
However, President Goenka did not reveal who the potential investors were. The industry sees that reducing the disagreement with the American company HAAH Automotive is the most promising.
The two companies are reported to have been negotiating for more than three months and reached an agreement late last year to create a positive environment. However, it has suffered difficulties due to Indian legislation that does not allow potatoes to sell stocks invested in foreign countries.
One official interpreted: “I know there was significant progress between Mahindra and HAAH at that time” and “Would you not have managed to convince the Indian government in terms of President Goenka’s comments?”
Mahindra has consistently revealed its intention to exit Ssangyong Motor. Mahindra, which owns a 74.7% stake in Ssangyong Motor, has invested 700 billion won, but the current stake is only one-third.
Ssangyong Motor has been in the red for 15 consecutive quarters since 2017, showing no signs of recovery.
Mahindra, whose situation was difficult due to the crown, abruptly withdrew from an investment of 230 billion won in April last year and invested only 40 billion won. In June of the same year, he made a will to surrender, saying: “We can relinquish control of Ssangyong Motor.”
Amid these flows, Mahindra has been unable to obtain concrete results related to the sale of Ssangyong Motor shares for more than six months. Because of this, some voices say the level of pressure on Mahindra has only increased while negotiations are blocked by difficulties.
Indeed, Anise Shah Mahindra, Chief Financial Officer (CFO), said in a video conference: “I hope the new investor will continue to manage Ssangyong Motor.” I will do it.”
In fact, it can be accepted as an output signal from Ssangyong Motor. When the Ssangyong Motor receivership begins, Mahindra will release 700 billion won of investment from 2011.
There is no justification for creditors like the government and the Korean Development Bank to provide additional support while majority shareholders have announced that they can no longer operate. Also, it is unknown whether creditors will accept it if a new investor makes an offer for a maturity extension.
An industry expert diagnosed: “The key is whether Ssangyong can break the deficit link and have a competitive advantage on its own.”
Ssangyong Motors has been approved by the Seoul Rehabilitation Court for an autonomous restructuring assistance program (ARS) that suspends the start of legal management procedures until the 28th of next month. At worst, when a deal doesn’t close, you’re at a crossroads between legal administration and liquidation in 12 years after 2009.
Press Releases and Article Reports [email protected]
[자유민주·시장경제의 파수꾼 – 뉴데일리 newdaily.co.kr]Copyright ⓒ 2005 New Daily News-Unauthorized Reproduction, Redistribution Prohibited
recommendation
Related Posts Good to read with the article you just saw!
Vivid
Headlines Know the main news at this time.