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