Goenka Chairman of Ssangyong Motor’s Board of Directors and President Mahindra. /Reuters Yonhap News
India’s Mahindra & Mahindra (Mahindra), the largest shareholder of Ssangyong Motors, announced that it will sign a key terms and conditions agreement (term sheet) to sell most of Ssangyong’s stake as early as next week. The term sheet is a document that presents the main terms and conditions for negotiation before the main contract.
According to the Economic Times of the Indian media on the 1st (local time), President Pawan Goenka Mahindra said at a press conference on the day that “the negotiations for the sale of Ssangyong Motor’s stake have been almost reached,” and “the negotiations are being finalized.” President Goenka serves as the chairman of the Ssangyong Motors’ board of directors.
President Goenka said that day, “the goal is to close the deal within February 28th,” he said. “If the contract is not signed within this deadline, Ssangyong Motor will enter court management.” He said, “The amount of losses resulting from the decision to stop investing in Ssangyong will depend on the terms of this agreement.”
Mahindra owns a 74.7% stake in Ssangyong Motor. In 2010, it bought a stake for about $366 million. Through this sale, the company plans to lower its stake to less than 30%. 25% potatoes are also performed.
President Goenka said, “The business environment has changed drastically in the past 12-15 months. As the automobile industry is undergoing a major change, we need to re-prioritize where to invest money.”
Mahindra previously announced the suspension of support for Ssangyong. Since then, it has been negotiating with US automobile retailer HAAH over the sale of its stake in Ssangyong Motor.
On this day, President Goenka did not disclose the name of the company under discussion. The Economic Times reported, “It is unclear whether the party to purchase shares announced by Mahindra is HAAH.”
Reporter Sun Han-gyeol [email protected]
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