Mahindra s stake in the company will be reduced to 30% or less.
Mahindra is looking to sell a majority stake of around 70% in the Korea-based SsangYong Motor Company (SMC).
Pawan Goenka, the Managing Director of Mahindra, has stated that the company is in serious discussion with an investor to invest in SMC for a majority stake. The term sheet is expected to be ready by next week.
If the deal goes through, Mahindra s stake in the company will be reduced to 30% or less. The company will also do a 25% capital reduction.
Mahindra had acquired SsangYong in 2010. It controls a 75% stake in the company. On December 21, 2020, SsangYong filed for bankruptcy after it failed to pay back its debts on time.