SsangYong extends buyout bid deadline to Aug 10

South Korean automaker SsangYong Motor today said that it has extended the deadline for submission of acquisition bids to August 10.

Indian automobile major Mahindra & Mahindra and P K Ruia Group are among the six companies in the race to acquire the ailing company. "We have extended the deadline till August 10, but I cannot tell you why," SsangYong Motor (SM) Strategy Department Manager Chung Yong-won told PTI over the phone from Seoul.

The company had set July 20 as the last date for submission of bids by the six interested parties. However, last week, Kolkata-based Ruia Group said that it has sought more time to complete due diligence.

In the meantime, officials on the Mahindra & Mahindra board will be convening a special meeting on Thursday to decide on the future course of action in the acquisition bid.

While Yong-won did not elaborate on the reasons for extending the deadline, reports from Seoul quoting the company said that the decision reflected the bidding participants' demand for more time to take up due diligence and detailed documentation -- besides funding plans.

SM, which has SUV models such as 'Rexton', 'Kyron' and 'Actyon' and sedan 'Chairman', is estimated to be worth up to USD 500 million. It has been undergoing a court-led restructuring since 2009, when it suffered heavily due to the downturn in the auto industry.

While China's SAIC Motor Corp owns 10 per cent in the troubled automaker, about 70 per cent is held by creditors -- led by state-owned Korea Development Bank.