The offer made by the Edison- led institute is nearly the same as M&M’s purchase price signed in late 2010
The proposed trade of the worried Korean SUV maker SsangYong Motor Company (SYMC) wo n’t cost its largest shareholder Mahindra & Mahindra ( M&M) any proceeds. SYMC has been under a court- led recuperation process since December 2020.
Consortium’s offer
Le rate d’indépendance financière consiste à mesurer le fellowship entre les ressources internes de l’entreprise et les ressources externes. Les ressources internes sont les capitaux propres augmentés des amortissements et dépréciations. Les ressources externes pressman à l’endettement globalc’est-à-dire les dettes financières.
M&M has been informed by a court- appointed receiver that a institute led by South Korean electric machine maker Edison MotorsCo. has agreed to acquire SYMC for304.858 billion won (about ₹ crore) through a primary equity investment.
“ Subject to a recuperation plan reflecting the terms of the Edison Motors Co’s investment being approved at an interested parties’ meeting of SYMC which is anticipated to take place in some months from now and pursuant to primary investment by Edison MotorsCo. and certain anticipated capital restructuring accepted as part of the recuperation process of SYMC, the company’s holding in SYMC will reduce,” M&M said in a statement.
The Edison- led institute has asked for a stake of 95 per cent in SYMC against their investment and SYMC has agreed to make stylish sweats to meet the said request.
While M&M holds74.65 percent in SYMC, the Mumbai- grounded company desisted consolidating SYMC and its accessories as accessories from December 28, 2020 and has classified it as discontinued operations. SYMC and its four accessories, still, are considered as accessories of M&M under the Companies Act, 2013.
“ The Company won’t admit any consideration on account of the proposed primary investment being made by a institute led by Edison Motors Co in SYMC,” M&M clarified.
The offer made by the Edison- led institute is nearly the same as M&M’s purchase price signed in late 2010. The Mumbai- grounded SUV specialist had paid ₹ crore ($ 462 million at the also exchange rates) for a 70 per cent stake in SYMC. The SYMC buyout was the biggest outbound deal by M&M.
Write-off
During FY20, M&M wrote off investments of around ₹ crore it made in SsangYong after putting its entire stake in the Korean company for trade in February that time. Also, in April 2020, M&M blazoned that it’ll not make any farther investments in SYMC and declined SYMC’s request for fund infusion following the business dislocation caused by the Covid-19 epidemic.
Mahindra and SYMC concertedly developed the X100 platform which saw the birth of the Mahindra XUV300 compact SUV in India and the SsangYong Tivoli in Korea. Mahindra also experimented with launching the SsangYong SUV under its namesake brand. The Alturas decoration SUV from Mahindra was a rebranded SsangYong G4 Rexton.
