Pawan Ruia eyes Korean car-maker

Aug 09, 2010 |

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Mumbai, Aug. 8: Kolkata-based Pawan Ruia group has also thrown its hat in the ring for South Korean car-maker Ssangyong. The group took the call on Sunday. Earlier, Mumbai based Mahindra group had also said that it would be bidding for the bankrupt auto firm.

The bid for the Korean firm could be in the region of $350-400 mn, it is being speculated. M&M and Pawan Ruia group are amongst the six bidders who have been shortlisted to bid for the troubled company. The last date for the submission of bids is August 10, which had been extended from July 20 earlier.

Ruia group is likely to form a special purpose vehicle involving its key firms — Dunlop and Falcon Tyres, in the process.

Ssangyong Motor Comp-any is South Korea’s fourth largest auto firm. It makes cars and trucks. The company has been through a very rough patch over the past decade and a half, going through receivership, two takeovers and crippling strikes.

It was first merged with the Daewoo Group in after the East Asian crisis of 1997, before being separated again.

Chinese auto firm SAIC had taken up a 51 per cent stake in SMC in 2004. SAIC has been charged with stealing Ssangyong’s hybrid technology by South Korean authorities. SMC employed a total of 4,821 people in March 2010. Its turnover for 2009 stood at $834 million and a net loss of $270 million. The debts of the company are over $200 million while net worth is completely eroded.

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