▪ Edison fails to fulfill its obligation to deposit the acquisition balance due by March 25
▪ SsangYong to seek more competitive investors and submit new rehabilitation plans within legal period

SsangYong Motor Company (SYMC) has announced that the Investment contract for the Merger & Acquisition (M&A) signed on January 10, 2022 with Edison Motors Consortium has been cancelled. Edison Motors Consortium was expected to deposit the balance for its takeover by March 25 (five business days before the date of the creditors’ meeting), but it has failed to meet this deadline.
 
After concluding the acquisition contract with Edison, SsangYong submitted a rehabilitation plan to the court on February 25, 2022. The plan included the repayment of the rehabilitation claims and changes to the rights of shareholders on the receipt of full payment for the takeover. The court set the date of the creditors’ meeting as April 1, 2022 for the hearing and resolution of the rehabilitation plan.

With the termination of the investment contract with the Edison, SsangYong will look for a new investor and submit a new rehabilitation plan to the court within legal period. The condition of SsangYong Motor Company has improved since the M&A process began in June 2021, due particularly to the following:

▪The company will launch new J100 model at the end of June.
▪The plan to move strongly towards marketing electric vehicles (EVs) has progressed well. The first EV E100 launched in September 2021 and the new U100 model is on schedule for the second half of next year while the strategic alliance with the world leading EV company BYD is now in place.
▪ 30,000 additional units will be exported annually resulting from the construction of a CKD plant in partnership with SNAM in Saudi Arabia which in which the production will start from 2023.
▪ A significant increase in export orders from overseas markets accounting for more than 13,000 backorders. This means that the business will be normalised to allow the resumption of two production shifts as soon as the global supply issue of semiconductors eases

Yong-won Jung, the receiver, commented: “Such an improvement in business conditions increases the company’s future value and attracts more competitive acquirers. We will make every effort to secure a re-sale in the shortest time possible, not only to alleviate the concerns of our partners, but also to build a firm foundation for the company’s long-term growth. <End>