KG Mobility selected as preferred negotiator for acquisition of domestic electric bus maker

[YONHAP PHOTO]

SEOUL -- KG Mobility, formerly known as Ssangyong Motor, has set out to negotiate with Edison Motor, a domestic electric bus maker to meet an agreement in an acquisition deal. Edison Motor creates electric buses with up to 85 percent localized parts.

The South Korean carmaker well-known for its lineup of sport utility vehicles (SUVs) said in a statement on April 26 that the company has been selected by a bankruptcy court in Changwon some 300 kilometers (186 miles) south of Seoul as the preferred negotiator for a conditional investment agreement with Edison Motors.

Edison Motors has been undergoing related procedures since a court ruling on the commencement of corporate restructuring procedures was made in January. KG submitted a letter of intention in March and went through preliminary evaluations during the first two weeks of April.

If KG's conditional investment and acquisition proposal is accepted by Edison Motors' board of directors, the company would sign a conditional investment agreement with Edison Motors. "We will use our technological capabilities as an SUV-specialized company and our experience in successfully changing a company's structure through a rehabilitation process to grow Edison Motors into a company that can contribute to social development," KG Mobility said.

According to the results of the investigation conducted by KG Mobility, Edison Motors produces electric buses with a localization rate of up to 85% and has its own technological competitiveness and sales network. KG Mobility believes that it can sufficiently revive the company by enhancing its competitiveness.