Ssangyong looking to sell minority stake to raise funds

According to a media report, Ssangyong could be in talks with Korean carmakers to raise funds by selling a minority stake.

It has been reported that the company has been on the lookout for an investor for the last 3-4 months. Initially, there were rumours of Ford as well as some European brands that were interested in purchasing stake in the Korean carmaker. However, it is believed that Ssangyong would prefer a Korean investor.

If Ssangyong fails to secure funds from private parties, it could ask for state-run lenders for a bailout. Without financial support, the company could go bankrupt in 3 months.

Earlier this month, Mahindra, which owns a majority stake in Ssangyong had announced that it would not inject fresh equity into the brand. The decision was taken after taking into consideration the effect of the outbreak of the Covid-19 pandemic on the global economy. Mahindra had also urged Ssangyong to find alternate sources of funding.

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