Mahindra to buy 70% Ssangyong stake for $378 million

Staff

and Wire Reports

Automotive News Europe -- November 23, 2010 06:01 CET

Mahindra & Mahindra Ltd., India's largest SUV maker, will pay 427.1 billion won ($378 million) for a controlling stake in Ssangyong Motor Co., the companies said Tuesday.

Mahindra, which aims to widen its model range and boost sales overseas, will take a 70 percent stake by buying new shares in the deal, which needs approval from Ssangyong creditors. Mahindra also will buy 95.4 billion won (about $84 million) of new bonds from Pyeongtaek-based Ssangyong.

Mahindra expects to complete the acquisition by March, the company said. The automaker was named the preferred bidder in August.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20101123/ANE/311239994/1117#ixzz166ymcqNn

Mahindra reportedly inks deal to buy Ssangyong for $463M

by Zach Bowman (RSS feed) on Nov 23rd 2010 at 4:01PM

Indian automaker Mahindra & Mahindra has officially sunk its teeth into South Korean automaker Ssangyong to the tune of $463.6 million. For that low, low price Mahindra has effectively walked away with a 70 percent controlling stake in Ssangyong through the purchase of newly released shares in the company and existing corporate bonds. The move follows up on a pact to acquire Ssangyong that Mahindra signed earlier this year, and according to The Wall Street Journal, the two companies look to close the deal by March of next year.

According to Mahindra, the match is a partnership made in heaven, with the Indian carmaker able to supply both cash and marketing grunt that should mesh well with Ssangyong's technological prowess.

We're guessing that the South Korean carmaker is just glad to have someone to help pull it out of the throws of bankruptcy.

link:

http://www.autoblog.com/2010/11/23/mahindra-reportedly-inks-deal-to-buy-ssangyong-for-463m/

MAHINDRA INKS DEAL TO PURCHASE SSANGYONG

By Drew Johnson

India’s Mahindra & Mahindra has officially been named the new owner of South Korea-based Ssangyong. Mahindra was named the leading bidder for Ssangyong earlier this year.

Per the terms of the deal, Mahindra will invest $463.6 million in Ssangyong, giving the Indian automaker a 70 percent stake in the company. The deal is set to be completed by March 2011.

“Together with its financial capability, Mahindra offers competence in sourcing and marketing strategy while Ssangyong has strong capabilities in technology,” Mahindra President Pawan Goenka said in the statement. “We are committed to leveraging the combined synergies by investing in a new Ssangyong product portfolio to gain momentum in global markets.”

Ssangyong was previously owned by China’s SAIC, but fell into bankruptcy protection since early 2009. Mahindra expects the purchase to give it access to “emerging and growing markets,” including Russia.

References

link:

http://www.leftlanenews.com/mahindra-inks-deal-to-purchase-ssangyong.html