Creditors of Ssangyong Motors and Shanghai Automotive Industry Corp. (SAIC) signed a memorandum of understanding for the sale of the South Korean carmaker.
Chohung Bank, the principle creditor and SAIC President Hu Maoyuan signed the agreement in Seoul on Tuesday.
Hu Maoyuan noted his firm would focus on consolidating Ssangyong Motor’s competitiveness and seek measures to expand into the global market. Ssangyong vehicles, in addition to its domestic Korean market, will be retailed in China.
Hu ruled out the possibility of cooperation between GM Daewoo Auto & Technology and Ssangyong after the deal. SAIC holds 10 percent of GM Daewoo. This comes as no suprise since GM already has joint ventures in China with SAIC's rivals.
According to industry sources, the sales price was settled at about $500 million.
SAIC was selected as the preferred bidder, while a consortium led by an American pension fund was named the next main bidder.
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