SsangYong Motor searching for possible buyer as Mahindra and Mahindra likely to exit

The sports-utility vehicle maker of South Korea, SsangYong Motor is in search of a potential buyer as Mahindra and Mahindra of India said that it could give up its majority stake in the struggling company.  

As per a spokesperson of SsangYong Motor, the company has picked an advisor to tap markets for a new investor.  

Shares in the carmaker closed up 30% after South Korean media, citing unnamed sources, said that China's Geely and BYD might be interested in SsangYong, which is 74.65% owned by Mahindra and Mahindra.

A Geely representative said that the carmaker is not interested to participate in any bidding for SsangYong. Electric vehicle maker BYD declined to comment.

South Korean media said SsangYong had picked Samsung Securities to tap the market for interest, working with its global strategic partner Rothschild.

SsangYong is burdened with high debt and reported its 13th consecutive quarterly operating loss in January-March. It suffered from sluggish sales even before the spread of COVID-19 due to tough competition in the sports-utility vehicle (SUV) market.