Ruia group to make a final decision on Ssangyong bid by 9th Aug

The Ruia Group announced on Thursday that company will make a final decision within next three days on whether to make a bid for the bankrupted South Korean firm Ssangyong. According to Mr Pawan Kumar Ruia, the Chairman of the Ruia Group, the company is yet to decide whether it will bid for it. He added that the company is evaluating the matter and will make a decision in the next three days.

Mr Ruia further said that the group is now minutely evaluating three things including the future cash flow projected in the management presentation, whether the standalone company would be sufficient in size to withstand future competition and if the profitability shown in the presentation is achievable. According to him, the present market cap of SsangYong is $400 million.

Meanwhile, the India's largest utility maker Mahindra Mahindra has stated that it would take some more time to reach a final decision on drawing a timeline to bid for Ssangyong Motor. As per a statement issued by the company, it is awaiting some additional information and a decision will be taken on a date closer to the date of the final bid. It is to be mentioned here that the deadline of this bidding has been set for the 10th of August 2010 and MM is one of the six firms who have been shortlisted for the bidding of this bankrupted Korean firm.

By acquiring this troubled Korean firm, these leading Indian firms plan to not only increase their presence in the overseas market but also capitalizing on comparatively higher profit margins. The on sale Korean firm currently has a two percent market share in its domestic market and sells its cars in many overseas markets including Russia, Middle-East, Europe, Africa, North and South America, China and Asia-Pacific regions.