In August, Mahindra was selected by Ssangyong creditors as the preferred bidder for a controlling stake in the nation’s smallest automaker.
“This deal paves the way for Ssangyong Motor to become a global SUV manufacturer through expansion in global sales, research and development, and investment in developing new products based on [Mahindra’s] strong management with financial resource,” said Lee Yoo-il, chairman of Ssangyong Motor, after signing the agreement with the Indian-based automaker.
Mahindra will hold a 70 percent stake in Ssangyong Motor by purchasing 427 billion won worth of Ssangyong shares and 95.4 billion won of corporate bonds.
Mahindra & Mahindra is Ssangyong’s third owner since 1998 when it was purchased by Daewoo before it went bankrupt. The automaker’s former Chinese parent company then bought Ssangyong in 2004.
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