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An official from the KDB said, “As KDB is funded at the expense of the public, it is necessary to determine whether to provide support after sufficient proof and review of the content and level of Edison Motors’ funding and future business plans.” It is judged that it is inappropriate for Edison Motors to unilaterally assert the justification and necessity of support through the media before it even starts.”
This is because Edison Motors chairman Kang Young-kwon, who was selected as the preferred bidder for the acquisition of Ssangyong Motors, announced at an online press conference on the same day that he wanted the Korea Development Bank to lend between 700 billion won and 800 billion won. .
On the same day, Chairman Kang also disclosed the funds for the acquisition of Ssangyong Motor and plans to raise funds after the acquisition. Edison Motors plans to raise 310 billion won in acquisition funds from the first capital increase, financial investors (SI), and strategic investors (FIs). Regarding the post-acquisition financing, the company plans to raise 490 billion to 530 billion won by issuing a capital increase through already listed Semisysco or Edison Motors, or by merging with Ssangyong Motor and listing it to raise funds. In addition, it plans to borrow 700 to 800 billion won from financial institutions including Korea Development Bank to raise a total of 1.48 trillion to 1.62 trillion won.
On the other hand, KDB Chairman Lee Dong-geol said at a parliamentary audit held by the National Assembly’s Political Affairs Committee the day before, “There is a limit to the support of Edison Motors without a judgment on its feasibility. I will,” he said.
In response, Chairman Kang said, “(Chairman Lee Dong-geol) said that Ssangyong Motor will support if a management team with a sound mind comes out with a business plan to survive. If you know what it is, of course I will support you.”
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