- KG consortium acquires 80.50 per cent stake
- Cessation of three subsidiary companies
Mahindra-owned debt-ridden Ssangyong Motor Company (SYMC) has been acquired by KG consortium for Rs 5,523 crore. The said rehabilitation plan has been approved by Seoul Bankruptcy Court wherein the KG group will get a dominating 80.50 per cent stake in SYMC as against the said investment.
Moreover, the current outstanding dues of the company would be restructured partly in cash and partly by conversion into equity shareholding. Additionally, SYMC will also get a cash payment of approximately Rs 59.38 crore reducing the share of the company to 5.15 per cent.
Coming to the subsidiary of the parent company, Mahindra Electric Mobility Limited will be entitled to 0.04 per cent stake and a cash payment of Rs 1.42 crore against the settlement of its outstanding dues.
With the implementation of the rehabilitation plan, SYMC along with its three subsidiary companies, Ssangyong Australia Pty Limited, Ssangyong European Parts Center B.V, and SY Auto Capital Company Limited would cease to exist.
