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South Korea’s SsangYong Motor sold for USD255M

SEOUL (CNA) – A consortium led by South Korean electric carmaker Edison Motors has agreed to acquire debt-ridden SsangYong Motor for KRW305 billion (USD254.65 million), SsangYong Motor said yesterday.

SsangYong is burdened with high debt and its vehicle sales last year fell to 84,496, down about 21 per cent from a year earlier, a regulatory filing from the automaker showed.

The automaker reported a January-September 2021 operating loss of KRW238 billion won from revenue of KRW1.8 trillion won.

SsangYong has been under court receivership since April in an attempt to rehabilitate the carmaker after majority owner Mahindra and Mahindra failed to secure a buyer.

Indian automaker Mahindra, which owned about 75 per cent of SsangYong as at the end of September, has been looking for a buyer for all or most of its stake, which it bought when the South Korean automaker was near-bankruptcy in 2010.

The logo of Ssangyong on its Korando during the 2019 Seoul Motor Show in Goyang, South Korea. PHOTO: CNA