Home Business Ssangyong Motor’s new owner, Edison Motors, requested a loan of 800 billion won

Ssangyong Motor’s new owner, Edison Motors, requested a loan of 800 billion won

by news dir

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On the 22nd, Kang Young-kwon (pictured), chairman of Edison Motors, who was selected as the preferred bidder for Ssangyong Motor’s acquisition, said on the 22nd, “I would like Korea Development Bank to provide a loan of 700 to 800 billion won.” Chairman Kang said this while announcing the current status of Ssangyong Motor M&A and its plans at an online press conference on the same day.

He said, “If the KDB properly sees Edison Motors’ recovery plan and knows that we have technological prowess, they will support it of course,” he said.

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 and financial and strategic investors. After the acquisition, 490 billion to 530 billion won of operating capital will be financed through secondary capital increase, and 700 to 800 billion won through asset-backed loans.

Regarding Ssangyong Motor’s normalization plan, he said, “We will build an electric vehicle production facility on the closed line 2 of the Pyeongtaek plant in Gyeonggi. said

However, it is known that there are not a lot of negative currents from inside and outside the KDB in that nearly half of the up to 1.6 trillion won required for the acquisition and normalization of Ssangyong Motor will be resolved with government support. A high-ranking KDB official said, “If an official request comes, we plan to review the loan and decide.” An official from the financial sector pointed out, “If normalization fails after lending a loan to Edison Motors, the problem may grow again.” Lee Dong-geol, chairman of the Korea Development Bank, also pointed out during a state audit held by the Political Affairs Committee the day before, that “there is a limit to the support of Edison Motors in a state where the business feasibility has not been determined.”

By Kim Il-gyu/Kang Kyung-min, staff reporter [email protected]

ⓒ Hankyung.com, unauthorized reprinting and redistribution prohibited

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