India: US firm HAAH Automotive reaches out to M&M to invest in SsangYong

Visual from the company website

US-based automobile distributor HAAH Automotive Holdings has reached out to India’s Mahindra & Mahindra Ltd (M&M) with an offer to invest USD 258 million in the latter’s Korean subsidiary SsangYong Motor Company, according to a report by the news agency Korean Investors.

The report said that Indian automobile manufacturer, which owns 75% stake in SsangYong Motor, is considering the proposal submitted by HAAH last week.

HAAH Automotive has also put forth some conditions while offering to invest in SsangYong including deferral of the cash-strapped Korean carmaker’s debt repayment to its creditors until its recovery, the new agency cited.

M&M declined to comment on the matter.

Earlier in June, Pawan Goenka, managing director at M&M had for the first time said that the company management is open to cede control of its debt-ridden subsidiary to willing investors.

The company has been looking out for investors since Jan – Feb for SsangYong in an attempt to arrange required funding for the Korean carmaker. M&M had also approached Korea Development Bank for arranging the funding for its subsidiary.

SsangYong posted a loss of 341.4 billion won ($288 million) in calendar year (CY) 2019 because of sluggish sales and increasing depreciation and operating costs, up from $56 million and $58 million in CY2018 and CY2017, respectively.

This article was first published on livemint.com.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.