M038;M eyes battered Korean car maker

A day after buying 55.2 per cent stake in Reva Electric Car Company,Mahindra amp; Mahindra Mamp;M is reportedly eyeing the financially-battered South Korean car maker Ssangyong Motor. According to a report in Korea Economic Daily,Mamp;M has already shot of a letter to Ssangyong evincing interest in acquiring a majority stake in the company. Though Ssangyong has confirmed that there are companies looking to buy a stake,it has so far not diclosed names of interested parties. Mahindra amp; Mahindra will have to send a letter of intent by May 28 as per a court deadline regarding the sale.

With 10 per cent owned by Chinese auto company Shanghai Automotive Industry Corporation SAIC,Ssangyong is in the midst of a court-approved turnaround plan. Following the slowdown,Ssangyong is desperately looking for a buyer to stay afloat with fresh capital.

According to the plan,approved by a court in December last year,the company was to convert almost 1 billion of debt into new shares. New stock would account for 50.1 per cent of all shares and open bids would be invited. The court has set May 28 as the deadline for a letter of intent.

The report also said there are other Korean companies that would bid for the auto company. FE