[Photo by Lee Seung-hwan]
South Korea’s KG Group has officially come to command SsangYong Motor Co. after its unit KG Mobility completed acquisition of a controlling stake in the SUV-focused carmaker.
According to its disclosure on Wednesday, SsangYong Motor issued 73,098,000 new shares to KG Mobility for 365.5 billion won ($262.3 million), through which ownership would reach 61.86 percent.
The stake holding of previous owner India’s Mahindra & Mahindra has been lowered to 10.07 percent from 26.4 percent. The Indian carmaker’s ownership was reduced to below 30 percent from 75 percent through stock retirement.
SsangYong Motor will issue additional new shares worth 564.5 billion won to pay back its liabilities, which would make KG Mobility’s stake greater.
The Korean carmaker plans to file an application for formal graduation from its second court receivership it had entered one and a half years ago.
KG Mobility is wholly owned by KG ETS. Kosdaq-listed KG ETS shares were trading 1.77 percent lower at 11,100 won in Seoul trading at 10:57 a.m. Wednesday.
By Lee Ha-yeon
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]