Chinese firm to take over Ssangyong

Chinese firm to take over Ssangyong

SEOUL: Creditors of Ssangyong Motors have endorsed a Chinese
firm as preferred bidder to take over the South Korean
corporation, which specializes in sports utility and recreational
vehicles, reports said on Sunday.

In a vote last week, 90 percent of the creditors confirmed
China National Bluestar Group as a favored bidder for Ssangyong,
Yonhap news agency said.

Chohung Bank, a key creditor, will hold a ceremony on Monday
to sign a memorandum of understanding allowing Bluestar to launch
a three-week due diligence study on Ssangyong, it said.

The vote was not affected by news reports that Shanghai
Automotive Industry was the only Chinese firm cleared for the
deal, Yonhap said. Bluestar has denied it lacks Beijing's
approval for the deal.

Bluestar, a state-owned Chinese chemicals firm, has been
recommended by Samil Accounting Corp., the lead manager for
Ssangyong's sale, as the preferred party for exclusive
negotiations with creditors.

The creditors, who hold 55.4 percent of Ssangyong, have pushed
for the sale despite protests by the company's 5,500-member
union.

Ssangyong has been controlled by creditors since 1999 after
its parent Ssangyong Group collapsed in the wake of the South
Korea's 1997-1998 financial crisis. --AFP