Business

‘M&M actively looking for investor for SsangYong’

Mahindra & Mahindra (M&M) said on Friday it was actively scouting for an investor who could take majority stake in SsangYong Motor Co. of South Korea to keep it going. “We have two more months to conclude a deal with the investor for SsangYong. We are aiming to sign the term sheet next week,” Dr. Pawan Goenka, MD, M&M, said while addressing a press conference.

“Majority ownership will be with the new investor and Mahindra will hold 30% or less in SsangYong if the deal goes through, If not, SsangYong will go into court receivership,” he added.

Dr. Anish Shah, Deputy MD and Group CFO, said the board had decided not to continue with SsangYong apart from the 40-billion Korean Won (₹70-crore) loan advance. “We have [invested] roughly ₹980 crore in equity and ₹950 crore [via] debt. We guaranteed ₹680 crore of loans from foreign banks from a Mahindra brand-value standpoint,” he said.

“We are optimistic there is a good chance for buyers to come in for SsangYong. M&M will cease to be a majority shareholder in SsangYong before the end of this financial year, to meet capital allocation targets,” he added.

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Printable version | Feb 28, 2021 3:55:12 AM | https://www.thehindu.com/business/mm-actively-looking-for-investor-for-ssangyong/article33475782.ece

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