Mahindra and Mahindra said is in the final stages of getting a buyer on board for its ailing Korean subsidiary Ssangyong Motor Co (SYMC) and is likely to conclude the deal by February end, company’s top officials told reporters on Friday. “We may sign a term sheet for SYMC next week. The deal is more or less agreed. We will conclude it by February 28, if everything goes as per the plan,” Pawan Goenka, managing director and CEO said. Post the sale, Mahindra will hold less than 30 per cent equity in the maker of Rexton and Tivoli SUVs, said Goenka.
Mahindra in discussion with potential investors to sell majority stake in SsangYong Motor PTI
New Delhi: Mahindra & Mahindra (M&M) Friday said it is in discussions with a potential investor to sell its majority stake in South Korean arm SsangYong Motor Company (SYMC) which has already filed for bankruptcy, and expects to sign a non-binding agreement next week.
The Mumbai-based auto major, which currently holds nearly 75 per cent in the Korean firm, expects to finalise the deal by February end.
“We are in discussion with a potential investor for majority stake in SsangYong. We hope to conclude the term sheet with the investor sometime next week,” M&M Managing Director Pawan Goenka told reporters in a virtual press conference.
‘M&M actively looking for investor for SsangYong’
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Aim to sign term sheet next week: MD
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Aim to sign term sheet next week: MD
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.
Mahindra engages investors to offload majority stake in SsangYong
If the deal goes through, the new investor will have control of SsanYong, with Mahindra holding only 30 per cent or less stake; otherwise the former goes into court receivership and its management is taken over by the court
BusinessToday.In | January 1, 2021 | Updated 21:58 IST
Indian auto manufacturer Mahindra & Mahindra announced that it is in discussions with potential investors to sell its majority stake in its South Korean subsidiary SsangYong. Mahindra expects to sign a non-binding agreement to this end by next week, and close the deal by February end. The Indian auto company wants the prospective investor to take over the operations of SsanYong, which had filed for bankruptcy.
Mahindra and Mahindra’s (M&M) second stint with Ford Motor Co as a joint venture partner has ended before it could start. The two companies have called off the proposed equity collaboration as part of which Ford would have ceded control of the Indian subsidiary to Mahindra. With the JV off the table, the duo will pursue independent strategies in the world’s fifth largest auto market. Meanwhile, M&M is also expecting to conclude a deal with a potential buyer for sale of its stake in Ssangyong Motor Co by February end. Both the developments reinforce the strategy of a tighter capital allocation which the Anand Mahindra-led firm embarked upon in the beginning of the ongoing fiscal. It also is an indication of the far reaching implications of the Covid-19 pandemic and its impact on the business plans of companies in India and globally.