Mahindra Set to Pump 40 Bil. Won into SsangYong Motor

SsangYong Motor announced on April 12 that its parent company, Mahindra Group of India, decided in a board meeting on April 10 to provide special funds of 40 billion won to it.

Mahindra provides the funds to its Korean subsidiary to solve its urgent liquidity problem. The funds will be initially treated as a loan but will be converted into capital later.

Mahindra canceled on April 3 its earlier plan to inject 230 billion won into SsangYong in new capital and decided instead to consider providing it with one-time special funds of up to 40 billion won over the next three months.

Mahindra’s latest decision is expected to give strong momentum to its efforts to normalize SsangYong Motor, including implementation of various support measure and search for new investors.

Meanwhile, SsangYong Motor announced on April 7 that it has signed an agreement on selling off its Busan Logistics Center. “The sale price is about 20 billion won, and payment will be made within this month. We will secure additional liquidity,” the company said.