HAAH Automotive proposes $258 mn investment in Ssangyong Motor
By Sep 21, 2020 (Gmt+09:00)
S.Korea's LS Materials set to boost earnings ahead of IPO process
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
Galaxy Ring, new foldables set to steal the show at Samsung Unpacked Paris
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
POSCO gears up for carbon-free steelmaking with hydrogen
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
SK Inc. in talks to sell Pharmteco’s US CDMO plant to Novo Nordisk
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
South Korea sets sights on fostering EDA tech to win HBM chip war
![close](/images/ico/eyes/close.png)
![open](/images/ico/eyes/open.png)
The sources said on Sept. 20 that HAAH Automotive last week submitted a proposal to India’s Mahindra and Mahindra Ltd. that it is willing to invest the amount in cash-strapped Ssangyong if it means its stake is large enough to control the Korean maker of sport utility vehicles. Mahindra, the largest shareholder of Ssangyong with a 75% stake, is considering the offer, they said.
In the proposal, HAAH Automotive also presented some conditions for its investment, such as a deferral of Ssangyong’s debt repayment to its creditors until the automaker is fully normalized, according to the sources.
![ssangyong-motor](https://www.kedglobal.com/data/ked/image/2020/08/Ssangyong-Motor-300x196.jpg)
In early August, Mahindra expressed its intention to give up management rights over the carmaker, stressing that it had no plan to inject new capital into the loss-making company.
Mahindra’s managing director Pawan Goenka said during a conference call on second-quarter results that it was working on a plan to cut its ownership in Ssangyong to less than 50% on condition that the Korean SUV maker finds a new investor. Ssangyong has selected Rothschild and Samsung Securities as its sale managers.
Falling exports in the absence of new models have dealt a heavy blow to the already troubled Korean automaker. Its operating loss more than doubled to 117.1 billion won in the April-June quarter, compared to a shortfall of 49 billion won a year earlier.
Industry watchers said HAAH Automotive may not have enough money to become a major shareholder of SsangYong with only 20 billion won in annual sales, as SsangYong needs 500 billion won to normalize its operations.
“HAAH Automotive’s proposal is not a binding offer. Also, it is known that there’s a difference between Mahindra and HAAH over the size of the stake up for sale,” said a source close to the matter.
Based in Irvine, HAAH Automotive is an auto startup established in 2014 by Duke Hale, a former vice president of Volvo, Mazda, Jaguar and Land Rover. HAAH is reportedly planning to distribute Chinese vehicles in the North American market.
Write to Jun Ho Cha at chacha@hankyung.com
Edited by In-Soo Nam
In-Soo Nam edited this article
-
-
-
Mergers & AcquisitionsEugene PE, KDB PE to acquire Boryung Biopharma for $231 million
Jun 27, 2024 (Gmt+09:00)
-
-