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Goenka, Chairman of the Board of Directors of Ssangyong Motor and Chairman of Mahindra. / Reuters Yonhap News
Mahindra & Mahindra (Mahindra) of India, the largest shareholder of Ssangyong Motors, announced that it will sign a key terms and conditions agreement (term sheet) to sell most of Ssangyong’s stake next week. The term sheet is a document that presents the main trading terms and conditions before the main contract.
According to the Indian media Economic Times on the 1st (local time), President Pawan Goenka Mahindra said at a press conference on the day that “negotiations for the sale of the Ssangyong Motor stake have almost been reached” and “the negotiations are being finalized. ” Chairman Goenka is the Chairman of the Board of Directors of Ssangyong Motors.
President Goenka said that day, “the goal is to close the deal within February 28,” he said. “If the contract is not signed within this period, Ssangyong Motor will enter the court administration.” He said: “The amount of losses resulting from the decision to stop investing in Ssangyong will depend on the terms of this agreement.”
Mahindra owns a 74.7% stake in Ssangyong Motor. In 2010, he bought a stake for around $ 366 million. Through this sale, the company plans to reduce its stake to less than 30%. 25% potatoes are also made.
President Goenka said: “The business environment has changed dramatically in the last 12-15 months. As the auto industry is undergoing a major shift, we must re-prioritize where to invest money.”
Mahindra previously announced the suspension of support for Ssangyong. Since then, it has been negotiating with the American auto retailer HAAH about the sale of its stake in Ssangyong Motor.
That day, President Goenka did not reveal the name of the company under discussion. The Economic Times reported: “It is not clear whether the party to buy shares announced by Mahindra is HAAH.”
Reporter Sun Han-gyeol [email protected]
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