Debt-Ridden SsangYong Could Get Acquired By US-Based Firm HAAH
HAAH is the optimal company to acquire financially unstable SsangYong and will submit an LOI (Letter Of Intent) by Friday, a person familiar with the matter gave the statement.
It has been reported time and again that Mahindra is searching for a buyer for its stake in SsangYong. In 2013, Mahindra bought a 70% share in the Korean firm. Mahindra & Mahindra Ltd, SsangYong’s Indian parent, had been in talks with HAAH since last year to sell its majority ownership in the Korean company as part of its global reorganisation plan in the wake of the Covid-19 outbreak. HAAH Automotive Holdings is an import automotive distribution business in the United States.
HAAH Automotive Holdings Founder Duke Hale said HAAH is the optimal company to acquire financially unstable SsangYong and will submit an LOI (Letter Of Intent) by Friday, a person familiar with the matter said over the phone. HAAH was expected to submit its LOI to the Seoul Bankruptcy Court by March, but it did not send the documents, which raised a lot of doubts regarding the seriousness of the takeover. With the failure to submit an LOI, the HAAH chief said the company needed more time to look into SsangYong’s financial details before making an investment decision. And replying to the above statement, KPMG Samjong Accounting Corp, the auditor of SsangYong, declined to give its opinion on the carmaker’s annual financial statements for the year 2020.
SsangYong is known to make SUVs and If HAAH succeeds in acquiring SsangYong, he said the California-based car importer plans to bring SsangYong’s SUV models and pick-up trucks to the US and Canada. US and Canada is one-of-the top markets for SUVs and pick-up trucks. Hope this changes the situation for SsangYong.
In April, SsangYong was placed under court receivership for the second time after undergoing the same process a decade earlier. Court receivership is one step short of bankruptcy in South Korea’s legal system. In receivership, the court will decide whether and how to revive the company.
SsangYong plans to receive LOIs from interested investors until Friday in the auction to find its new owner. SsangYong could be delisted if its accounting firm again refuses to offer an opinion on the company’s annual performance for the following year after the one year.