SsangYong picks manager to sell Mahindra's stake
- Last week, Mahindra & Mahindra had said that it is willing to let go of its ownership stake in SsangYong.
South Korea's SsangYong Motor has picked a manager to sell a stake held by India's Mahindra & Mahindra, a spokesman at SsangYong said on Friday.
SsangYong is looking for a new investor and has picked Samsung Securities, which is working with its global strategic partner Rothschild, to tap the market for interest, South Korean media reported earlier on Friday.
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The spokesman declined to name the adviser. Samsung Securities declined comment. Rothschild did not immediately reply to a request for comment. Mahindra, which holds a 74.65% stake in SsangYong, was not immediately available for comment.
SsangYong shares closed up 30% on Friday after the news versus a 0.4% rise in the wider market.
An executive at Mahindra said last week that it is willing to let go of its ownership stake in SsangYong.
Also Read : Why Mahindra & Mahindra seeks to give up control of struggling SsangYong Motor
The stake at is valued at 332 billion won ($274.59 million)as of Friday's closing.
The automaker suffered from sluggish sales even before the spread of Covid-19 due to being increasingly sidelined in the fiercely competitive sports utility vehicle (SUV) market, and in the first quarter it marked its 13th consecutive quarterly operating loss.
Also Read : Nine years on, SsangYong struggles to enter fast lane
SsangYong provisionally sold 31,110 vehicles during January-May this year in South Korea, down 35% from 47,731 in the same period last year. It exported 8,097 vehicles, down 21% from 10,299 in the same period last year.
