Kwanglim, a special equipment automobile affiliate of the Ssangbool Group, formed a consortium with KH Phillux, an electronic component, material and lighting affiliate of KH Group, to acquire Ssangyong Motor.
According to the SsangBall Group on the 11th, the SsangBallung-KH consortium submitted a letter of intent to take over to Ssangyong Motor and EY Hanyeong, the lead for the sale.
KH Group has about 40 affiliates in 15 countries at home and abroad, including two KOSPI-listed companies such as KH Electron, KH Phillux, Jangwon Tech, KH ENT, and IHQ, and three KOSDAQ-listed companies. The group’s sales are 1.2 trillion won, the real estate held by the group is about 2 trillion won, and the total assets are about 4 trillion won.
KH Phillux, which participated in the consortium, develops automotive parts for eco-friendly vehicles as a new business. It is conducting research and development (R&D) for electric vehicle inductors, transformers, and PFCs. When taking over Ssangyong Motor, it will be possible to secure a stable source of parts demand.
The submission of the letter of intent was made when the sale of Ssangyong Motor was effectively decided through a stalking hose method. Although the court’s permission still remains, it is known that there is a high possibility of proceeding with the stalking hose method as there are companies that want to take over.
The stalking horse is a method of selecting prospective acquisitions in advance and conducting an open competitive bidding separately. If there is a new buyer willing to offer a higher price, the existing contract is invalidated, but if the bid fails, the buyer is given the right to purchase.
Kwanglim CEO Seong Seok-kyung said in a statement on the same day, “As stated earlier, we are preparing the acquisition funds through our own and capital raising, and we are doing our best to secure operating funds and reserve funds for cash resources. There will be various difficulties, but we will try to solve them.”
Ssangyong Motor plans to start selecting a preferred buyer (to be taken over) for signing a stalking hose-type contract after receiving permission from the Seoul Rehabilitation Court this week. In addition to the current Ssangbool Group, KG Group has also announced its intention to take over.
By Park Jin-hyeong, staff reporter jin@etnews.com
