BENGALURU, April 7 (Reuters) – Indian carmaker Mahindra & Mahindra ( MAHM.NS ) said on Thursday it will sell its bankrupt unit, SsangYong Motor Co ( 003620.KS ), to South Korean electric carmaker Edison Motors Co. The contract to sell has been terminated. .
Mahindra said in an exchange filing on Thursday that SsangYong’s receivership cited Edison’s failure to raise the bid amount as a reason for the termination of the deal.
Indian carmaker Mahindra, which owned about 75% of SsangYong as of the end of September, is looking for a buyer for all or most of its stake, which it bought when the South Korean carmaker took over in 2010. The company was on the verge of bankruptcy.
SyangYong has been under judicial receivership since last April in an attempt to revive the carmaker after Mahindra failed to secure a buyer.
In January this year, SsangYong Motor said a consortium led by South Korean electric car maker Edison Motors Co had agreed to buy it for 305 billion won ($254.65 million). Read more
Reporting by Nalur Seethuraman and Chandni Monappa in Bengaluru; Edited by Anil D’Silva
Our Standards: Thomson Reuters Trust Principles.