Ruias, M&M not yet ready to finalise SsangYong bid
09 July 2010
The Pawan Kumar Ruia Group, promoter of Dunlop tyres, has sought more time to complete due diligence to acquire bankrupt South Korean automobile firm SsangYong Motor Co.
''We have asked for some more time to complete the due diligence. Only after getting a response from them (SsangYong) can we decide on the next step,'' a senior official of the Ruia group told newspersons in Kolkata on Thursday.
Mahindra & Mahindra (M&M), which is also in the race for SsangYong, has said it will take a call before the July 20 deadline for the submission of bids. The Ruia group and M&M are among the six suitors shortlisted for buying out the South Korean firm.
The Ruias have appointed global consulting firm Deloitte as an adviser.
SsangYong, which has been undergoing a restructuring programme following an order from the Seoul Central District Court last year, is looking for a buyer to stay afloat with fresh capital.
China's SAIC Motor Corporation owns about 10 per cent in SsangYong. About 70 per cent is held by creditors, led by state-owned Korea Development Bank. Their debts have been converted into shares.