The Kolkata-based Ruia Group confirmed on Sunday the long-standing rumour that it would participate in the bidding for bankrupt South Korean sports utility vehicle maker SsangYong Motors. The other Indian bidder, utility vehicle major Mahindra & Mahindra, had confirmed its participation on Saturday. The deadline for the bids is Tuesday.
"The Ruia group is indeed bidding for SsangYong. This has been decided in a meeting today, presided by chairman Pawan K Ruia," the group said in a statement. The company's board met in Kolkata on Saturday and decided to bid for the Korean auto company.
A group spokesperson declined to comment on the size of the forthcoming deal. The market capitalisation of the company is $400 million (Rs 1,840 crore).
Debt-ridden SsangYong Motors manufactures sports utility vehicles and recreational vehicles like the Rexton, Kyron and Actyon. The majority stake in the company was put up for sale by administrators earlier this year, and has drawn interest from the Renault-Nissan alliance, apart from the two domestic firms in the fray.
SsangYong Motor has been under court-led bankruptcy protection since early 2009 after suffering cash exhaustion. The company is the fourth-largest car maker in South Korea, although its market share is just two per cent.
The four issues Ruia weighed before deciding on the bid were future cash flows of SsangYong, profitability of the carmaker, stand-alone manufacturing capacity of the plant and the territories where the company had a presence, and the possible expansion of these markets.