Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Ssangyong extends bid deadline

SEOUL, Jul 13 – Ailing South Korean automaker Ssangyong Motor said on Tuesday it had extended the deadline for final bids for a controlling stake in the firm following requests from bidders for more time.

The deadline was extended from July 20 to August 10.

Ssangyong said six bidders, including an alliance of France\’s Renault and Japan\’s Nissan Motor, had joined the race.

The preliminary bidders also include Young An Hat, a local headgear company which owns bus maker Daewoo Bus, and India\’s top utility vehicle company Mahindra and Mahindra, Yonhap news agency said.

The cost of the stake is estimated at between 400 billion won (330 million dollars) and 500 billion won (410 million dollars), it said.

Ssangyong, the country\’s smallest automaker, has been under bankruptcy protection since February 2009 after its former Chinese parent, Shanghai Automotive Industry Corp, declined to pump in more funds.

Auto analysts say the company\’s high-end gas-guzzling luxury sedans and sport utility vehicles had apparently discouraged some potential bidders.

Ssangyong\’s once-militant labour union, which staged a violent occupation of the plant for nearly 80 days last year in protest at mass redundancies, was another potentially discouraging factor.

Workers at the plant have since cut ties with the militant Korean Confederation of Trade Unions. The union has agreed to let management determine wage levels for this year.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...