SEOUL — South Korean sport utility car maker SsangYong is searching for a prospective purchaser just after India’s Mahindra and Mahindra said it could give up its bulk stake in the having difficulties company. SsangYong has picked an advisor to faucet markets for a new investor, a spokesman for the South Korean organization mentioned on Friday.

Shares in the carmaker closed up 30% right after South Korean media, citing unnamed resources, mentioned on Friday that China’s Geely and BYD may possibly be intrigued in SsangYong, which is 74.65% owned by Mahindra and Mahindra.

A agent for Geely, on the other hand, stated the carmaker has no approach to take part in any bidding for SsangYong. Electric motor vehicle maker BYD declined to comment.

South Korean media said SsangYong had picked Samsung Securities to tap the industry for interest, functioning with its world wide strategic associate Rothschild. Samsung Securities and Rothschild declined to remark and SsangYong would not validate the name of its advisor.

SsangYong is burdened with substantial credit card debt and noted its 13th consecutive quarterly functioning decline in January-March. It endured from sluggish product sales even prior to the distribute of COVID-19 thanks to tricky levels of competition in the sports activities-utility auto (SUV) sector.

An govt at Mahindra mentioned previous week that the Indian corporation was prepared to allow go of its ownership stake in SsangYong.

The stake at is valued at 332 billion gained ($274.59 million)as of Friday’s stock current market closing.

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