M&M’s bid for Ssangyong below $500 million

M&M’s bid for Ssangyong below $500 million

As the race for the acquisition of Ssangyong Motors comes closer, it has been learned that the India's largest utility vehicle maker Mahindra & Mahindra will put in a bid below $500 million for the troubled South Korean sports utility vehicle maker.

While the M&M board has recently authorized the submission of bid to acquire majority stake in Ssangyong, it has been learned from the banking sources in the company that the amount of bid will be below the $500 million mark.

Moreover, it has also been learned that the bid will involve equity infusion of around $150 million into Ssangyong which will give them a majority stake in the company.

According to the estimates by the analysts the total value of the South Korean auto major is s pegged at around $600 million and its lenders may have to take a partial hit in the process.

While the company declined to comment on the issue, it is to be mentioned here that other names that are also in the fray to bag Ssangyong are the Kolkata-based Ruia group, French auto giant Renault and Nissan alliance, South Korean private-equity fund Seoul Invest and South Korea's Renault Samsung Corp.

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