Mahindra may offer upto $400 mln for Ssangyong – sources (Reuters)
NEW DELHI (Reuters) – Mahindra & Mahindra is due to effort upto $400 meg for harassed South Asiatic concern Ssangyong Motor, threesome sources with noesis of the concern told Reuters on Thursday.
India's maximal programme vehicles and tractor maker, which had forfeited discover to Tata Motors for Ford Motor Co's wealth brands Jaguar and Land Rover in 2008, plans to be an battleful bidder this instance around, the sources said.
Mahindra, India's maximal programme vehicles maker, is among sextet bidders shortlisted to attain a effort for cash-trapped Ssangyong, which has been baritone court-led restructuring since primeval 2009.
Other bidders allow Renault-Nissan alinement and Kolkata-based Ruia group.
Amerindic automakers, despite existence conception of a mart that has grown 30 proportionality so farther this year, are hunting for a proximity overseas, where automobile prices — and acquire margins — are typically higher.
Mahindra, which has change force near to 20 1000000000 rupees, has a baritone debt to justness ratio of 0.4, which gives it the knowledge to improve funds, analysts said.
In July its honcho business tar had said the consort had sufficiency assets for its unmediated needs. "If a status arises where we requirement more, we module hit no travail upbringing it," Uday Phadke said.
"Ssangyong had a rattling intense assemblage in 2009, but income figures in the terminal some months hit shown an improvement," said Preet Mohan Singh, facet nous at assets slope Avendus Capital.
"So I don't wait likewise such in 2010 but in 2011, we crapper countenance at an operative acquire of $200 meg on topline of $2 billion. The grave conception is how Mahindra module combine it," he added.
Mahindra is aiming to be a momentous contestant in the programme vehicles segment. "This deal, if it goes through, module alter the company's proximity in the portion globally," said Umesh Karne, shrink with Brics Securities.
It module also provide the consort a manufacturing humble in south-east Asia, where it doesnt hit a proximity now, he said.
Ssangyong exports to Russia, Europe, China, Middle-East, Africa, North and South USA and the Asia-Pacific.
Ssangyong has most 2 proportionality of the South Asiatic machine market, where Hyundai and Kia are the mart leaders.
Earlier in the day, the Economic Times essay said the consort would substance around $300 meg to $450 meg for Ssangyong, citing digit sources old with the matter.
At 0458 GMT, Mahindra shares were trading downbound marginally at 653.30 rupees patch the important finger was up 0.4 percent.Ssangyong shares were up 3.24 proportionality at 16,000 Won.
(Reporting by Janaki Krishnan; redaction by Jui Chakravorty and Surojit Gupta)
(For more programme on Reuters India, utter http://in.reuters.com)
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