A Korean Fund May Buy 51% Stake in Ssangyong (SEO:003620)

Seoul, Sep 2, 2009 AEST (ABN Newswire) - A Korean private equity fund has proposed to purchase 51 per cent stake in carmaker Ssangyong Motor (SEO:003620) for KRW300 billion-KRW400 billion, said a Korean media.

The local fund Seoul Invest was looking for investors for the planned acquisition, which would include management rights in Ssangyong Motor. If the takeover of Ssangyong succeeds, the fund will focus on restructuring labor-management relations and developing new models aimed at niche markets.

It is reported that some overseas financial investors and domestic investors may participate in the fund, while large South Korean companies have shown little interest in the plan.

Ssangyong, majority owned by China's SAIC Motor Corp, filed protection under court receivership in February. SAIC decided not to throw any more money at the Korean manufacturer after a huge loss in the Ssangyong investment.

Contact

Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net