KG Mobility picked preferred bidder to acquire electric bus maker Edison Motors

▲ This file photo offered by KG Mobility shows the Torres SUV. (PHOTO NOT FOR SALE) (Yonhap)

KG Mobility-Edison Motors acquisition

KG Mobility picked preferred bidder to acquire electric bus maker Edison Motors

SEOUL, April 26 (Yonhap) -- KG Mobility, formerly known as SsangYong Motor Co., said Wednesday it is in the process of acquiring Edison Motors Co., an electric bus maker, as part of its business diversification strategy.

A bankruptcy court in the southeastern city of Changwon has picked KG Mobility as a preferred bidder to acquire Edison, which has been under the court-led debt rescheduling program since January, the company said in a regulatory filing.

Edison previously tried to acquire SsangYong Motor early last year but failed to make a full payment for the debt-laden carmaker, which was under court receivership, by the March 25 deadline.

The Seoul Bankruptcy Court picked chemical-to-steel firm KG Group as final bidder to acquire SsangYong in June that year and approved its debt payment plans in August. In October, SsangYong graduated from the 1 1/2-year court receivership.

In March this year, SsangYong changed its name to KG Mobility, as it seeks to transform itself into a future mobility solutions company.

SsangYong is an SUV-focused carmaker, and its lineup includes the Torres, Tivoli, Korando, Rexton and Rexton Sports SUVs.

KG Mobility submitted a letter of intent to acquire Edison Motors last month, conducted preliminary due diligence early this month and submitted an investment proposal to the bankruptcy court in Changwon, which is in charge of the debt restructuring of Edison Motors.

The court plans to pick the final bidder for Edison Motors through a stalking horse bid, in which preliminary bidder KG Mobility suggests its price for Edison ahead of an auction and other bidders submit their prices in the auction.

If a bidder suggests a higher price, KG Mobility has to decide on whether to take over Edison at the other bidder's price or not.

The court is expected to hold the auction next month.

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