Mahindra releases a statement on Ssangyong

Earlier this month, there were reports suggesting that Mahindra was planning to revive Ssangyong with an investment of US$ 380-425 million. In response to these reports, Mahindra has issued a clarification.

Official statement:

The Board of SsangYong has approved a 3 years business plan which leads to profitability of the company in the year 2022. This plan requires outside funding of 450-500 billion KRW (USD 380 – 425 million) over a period of three years. About half of this amount is to repay the existing loan and the remaining is to augment the capex required for new product development. Funds required are expected to be generated by a combination of fresh bank loans, new investment and further equity investment by Mahindra. No equity proposal has been put up to the Mahindra Board of Directors as on date. A proposal will be presented to the Board and a decision will be made only after Mahindra management has vetted the plan and evaluated its feasibility.

Source: Read Full Article