KG Group is also on fire following SsangBall and Enplus before the takeover of Ssangyong Motor. The photo shows the main gate of Ssangyong Motor’s Pyeongtaek plant in Pyeongtaek, Gyeonggi-do. jtk@newsis.com
KG Group challenged Edison Motors to buy Ssangyong Motors, which was on sale once more in the M&A market due to the failure of the takeover of Edison Motors. Following the SsangBall Group and EN Plus, the KG Group also jumped into the takeover battle, sparking a renewed struggle for the acquisition of Ssangyong Motor.
According to the investment banking (IB) industry on the 6th, KG Group said, “We have received an investment prospectus from the sales manager (EY Hanyoung Accounting Corporation) and are considering participation in the bid.”
The KG Group is the birthplace of Gyeonggi Chemical (now KG Chemical), the first fertilizer company in Korea. Its subsidiaries include Inesis, KFC Korea, Dongbu Steel (currently KG Steel) and the business magazine E-Daily.
KG Group is said to be pushing for the acquisition of Ssangyong Motor by forming a consortium once more with Cactus Private Equity (PE), which took over Dongbu Steel together. KG Group and Cactus PE bought and revived Dongbu Submission, which was in a workout state in 2019.
EY Hanyoung’s estimate of the liquidation value of Ssangyong Motor, including the site and assets, is regarding 1 trillion won. Considering SsangYong Motor’s debt and operating capital, the amount required to acquire Ssangyong Motor is expected to exceed 1.5 trillion won. The industry sees KG Group as having a stronger financial power than other Ssangyong takeover candidates, such as the recent sale of KG ETS, a subsidiary of KG Group, for 500 billion won.
Ssangyong Motor signed an acquisition contract with the Edison Motors consortium in October last year during court proceedings. However, the contract was terminated when the Edison Motors consortium failed to pay the balance of the acquisition amount of 274.3 billion won by the 25th of last month, the deadline for payment.
Park Kyung-dam reporter wall@hankookilbo.com
