HAAH Automotive, a US-based vehicle distributor, is proposing to speculate $258 million into the troubled Korean carmaker SsangYong Motor Co to amass Mahindra & Mahindra’s (M&M) vital stake within the firm, an funding banking supply advised Korean Traders, a information company.
Final week, HAAH Automotive submitted a proposal to M&M that it’s prepared to put money into Ssangyong if it means its stake is giant sufficient to regulate the Korean maker of sport utility automobiles, the company added.
M&M, the biggest shareholder of Ssangyong with a 75 p.c stake, is known to be contemplating the provide. When contacted, M&M declined to remark on the story.
Within the proposal, HAAH Automotive additionally offered some circumstances for its funding, equivalent to a deferral of Ssangyong’s debt reimbursement to its collectors till the automaker is totally normalised, Korean Traders claimed quoting sources.
M&M has been in search of a accomplice for managing SsangYong for the reason that starting of 2020. In June, M&M mentioned it was able to cede management of SsangYong after it refused to pump in additional investments into the money strapped carmaker.
The Mumbai-based firm had indicated at the moment that it doesn’t intend to exit SsangYong utterly, however scale back its stake and turn into a minority investor.
In April, the M&M board declined to inject any extra funds in to SsangYong after the Korean firm sought an infusion of $406 million. Since then, SsangYong has liquidated some non-core belongings to generate working capital whereas maintain prices down.
HAAH Motors Holdings is a privately held firm situated in Irvine, California. China’s Chery Car Co, has partnered HAAH to assemble and promote SUV within the US below the model Vantas.
First Revealed on Sep 21, 2020 04:56 pm