Dunlop assessing feasibility of acquiring Korean SsangYogJune 15th, 2010 - 7:48 pm ICT by IANS
Kolkata, June 15 (IANS) Tyremaker Dunlop India Tuesday said it is assessing the feasibility of taking over South Korea’s bankrupt SsangYog Motors, but would not go overboard to acquire the company if the value is too high and a turnaround would be difficult.
“We have placed our intention to bid for acquiring the company. We have been shortlisted. Due diligence process is on. Everything will depend on the due diligence report,” Dunlop chairman Pawan Ruia told reporters here.
Speaking after the 83rd annual general meeting of the company, Ruia said his company was now analysing whether it would bid or not and at what price.
“The question for us is whether we can turnaround the company in five-six years. We will move ahead only if we are sure about that,” he said.
Ruia said the amount of the deal, which industry experts have said could be worth upto $600-800 million, was very high. “We are not finding it logical. We will not go overboard if we feel the value is extraordinarily high”.
He said the total liability of the south Korean company, which mainly makes small utility vehicles, was over $700 million.
Dunlop and Mahindra and Mahindra are among the shortlisted firms for the $500-million (Rs 2,321-crore) Ssangyong Motor, which suffered heavily during the economic downturn. The company is now undergoing restructuring.
China’s SAIC Motor Corp has a 6.2 percent stake in the South Korean company. A Seoul court will receive the binding bids by July 20 and the new suitor is likely be finalised by August.
“We still have a month’s time to think over the deal,” added Ruia.
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- Mahindra inks pact to acquire Ssangyong Motors - Aug 23, 2010
- India's Mahindras may acquire Korea's Ssangyong next year (Lead) - Nov 11, 2010
- Mahindras to make foray in aerospace industry - Jun 27, 2010
- Indian utility vehicle maker prime bidder for Ssangyong - Aug 12, 2010
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Tags: annual general meeting, due diligence process, due diligence report, dunlop india, economic downturn, feasibility, industry experts, mahindra and mahindra, pawan, rs 2, ruia, saic, seoul, shortlisted firms, south korea, south korean company, ssangyong motor, suitor, turnaround, utility vehicles