Ssangyong Motor’s new owner candidate ‘KG Consortium’… Acquisition price of regarding 900 billion wonSsangyong[003620] The SsangBall Group Kwanglim Consortium, which participated in the acquisition, announced on the 13th that it would apply for an injunction once morest the decision of the court to select a consortium of KG Group and private equity fund Pavilion PE as a prospective takeover.
In a statement on the same day, the Kwanglim Consortium argued that the formation of a consortium between KG Group and Pavilion PE, which had individually expressed their intention to participate in the acquisition, constituted bid rigging.
The Kwanglim Consortium presents as the basis for this argument the Monopoly Regulation and Fair Trade Act, which stipulates that ‘at the time of bidding, you must not jointly agree with other business operators to restrict competition unfairly’.
An official from the Kwanglim Consortium said, “There are provisions in the guide to the proposal of terms and conditions provided by Hanyoung Accounting Firm, the lead lead for the sale, to prevent unfair competition. We will proceed,” he said.
He added, “Irrespective of this ‘Stalking Horse’ selection, the Kwanglim Consortium will also participate in competitive bidding.”
A stalking horse is a sale method in which a conditional investment contract is concluded with a prospective acquisition, but the final acquirer can change if a candidate offers better conditions in a subsequent open bidding.
In this bid, the KG consortium is said to have offered regarding 900 billion won and Ssangbangbang Group regarding 800 billion won.
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