SsangYong Motor shares bounce over 50% on investor deal, Auto Information, Automobilnews – Information by

SsangYong Motor shares bounce over 50% on investor deal, Auto Information, Automobilnews

At the moment, Mahindra holds 74.65 p.c stake in SsangYong.

New Delhi: Mahindra & Mahindra-owned Korean SsangYong Motor Firm has lately witnessed a bounce in its share value whereas touching the higher circuit of 5,620 South Korean Received (SKW) to finish at SKW4,985 per peculiar share on Tuesday, as investor curiosity and information of a doable takeover did the rounds.The auto firm’s share value has gained about 120% within the final three months and 46% prior to now week itself.

As per a Korean media report on Monday, SsangYong Motor plans to signal an funding settlement with the US-based HAAH Automotive Holdings someday this week. HAAH is a California-based automotive distributor and is partly owned by China’s Chery Vehicle Firm.

Mahindra & Mahindra had earlier introduced that it’ll not make any additional investments within the ailing SUV maker and needed to surrender its controlling stake after being unable to show across the operations of the corporate. The corporate’s board moved a particular decision at its AGM to cut back its shareholding in SsangYong to lower than 50%, a sign of a brand new investor coming in fairly than a whole sell-out. At the moment, Mahindra holds 74.65% stake in SsangYong. It has invested greater than USD110 million because it first acquired a controlling stake within the loss-making agency almost a decade in the past. Its board has been towards any additional funding within the Korean entity.

By March-end, SsangYong has been in monetary disaster with USD322.4 million short-term loans, to be repaid inside a 12 months, price SKW167 billion from JP Morgan, BNP Paribas and Financial institution of America.

Within the face of rising money owed and mounting losses, the corporate had managed to promote certainly one of its service centres within the Guro district in Seoul. By the sale, it managed to lift near USD147 million

In the meantime, Ssangyong reported a internet lack of USD157 million for the primary quarter of 2020, its thirteenth consecutive quarterly loss that makes it an enormous legal responsibility for the Indian proprietor.

In 2019 SsangYong’s annual gross sales fell 6.5% to 132,799 models from 141,995 models a 12 months earlier as a consequence of decrease demand. Throughout the present interval of January to March 2020, gross sales for the corporate fell 31% to 24,139 models from 34,851 throughout the identical interval in 2019.Over the past 5 years, returns have been fairly dismal, when the share value was down 56% within the interval. The corporate noticed a lacklustre development with its revenues rising by 1.0% per 12 months.

SsangYong’s lineup of automobiles embody its flagship G4 Rexton, Tivoli, Korando and Rexton Sports activities.

Additionally Learn: Mahindra’s SssangYong near signing binding settlement with US agency, Korean media reviews

SsangYong Motor shares bounce over 50% on investor deal, Auto Information, Automobilnews – Information by


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