Ssangyong Motor's main creditor, Chohung Bank, said Samil Accounting Corp., in charge of due diligence on Ssanyong, recommended Monday the Nanxing Group, a Chinese government-owned petrochemical firm, as the potential bidder. General Motors, already owning a controlling share of GMDaewoo, had been the only manufacturer to make public its interest in acquiring Ssangyong.
It is understood that the acquisition could be completed by the end of the first quarter of 2004 subject to due diligence proceedings expected to follow a the signing of a memorandum of understanding before the end of 2003. The Nanxing Group plans to pay 11,000 Korean won per share for a 55.4 percent stake in Ssangyong Motor.
While it is unclear what implications a Chinese purchaser may have for the recently-appointed UK distributor for Ssangyong, it is more likely to retain the importership than it would have been following a GM take-over.