Mahindra says no to big investments in SsangYong04/04/2020
Mahindra has announced that it will not inject fresh equity into SsangYong and has urged the company to find alternate sources of funding.
The decision was taken during a special meeting of the Board of Directors convened to review investment in the Korean brand, after taking into consideration the effect of the outbreak of the Covid-19 pandemic on the global economy.
However, Mahindra could consider a special one-time infusion of up to US$ 32 million over the next 3 months.
Earlier, the management and labour union of SsangYong had requested for fresh injection of equity to help fund US$ 406 million over the next 3 years.
Mahindra would continue to support all non-fund initiatives like capex-free access to Mahindra’s new platforms such as W601, support technology programs which would help reduce SsangYong’s capex, support the material cost reduction program that is currently underway and support SsangYong’s management to find new investors.
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