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Indian car makers undecided on Ssangyong acquisition news
06 August 2010

Indian automakers in the fray for troubled South Korean company, Ssangyong Motor seen to have not yet decided on their next move.

Kolkata-based Ruia Group said today, it would take another three days to decide on the issue, Mahindra & Mahindra (M&M) said it had time till 10 August to decide on the bid. It also denied reports in the media that the company's board would decide at a meeting on the issue today.

Shortlisted contenders have time up to 10 August to submit their bids.

Ruia Group chairman Pawan K Ruia told Business Standard newspaper that he had visited South Korea and seen the plant, but the group has yet to make a decision.

He said there were four specific issues for consideration: future cash flows of Ssangyong, the carmaker's profitability, the plant's stand-alone manufacturing capacity, and the territories where the company had a presence as also the possible expansion of these markets.

He added that the group had started talks for funding and these have met with positive indications for this.

Ruia was however not forthcoming on the possible valuation of Ssangyong and said media reports on the same were based on the company's market capitalisation, which currently stood at $400 million.

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Indian car makers undecided on Ssangyong acquisition