Ssangyong plans shares buyback

20 September 1999 00:00  [Source: ACN]

A consortium headed by Ssangyong Oil will pay more than Won900bn (US$756m) to buy back a 28.4% stake held by affiliate Ssangyong Cement, ACN was told. The deal is expected to consist of a Won340bn cash payment, with the rest a debt-for-equity swap.

Ssangyong Group, the government and banks are expected to formally approve the deal at end-September. The MoU was signed in July (ACN 19 July, p7).

Ssangyong Oil will set up an asset management company with Saudi Aramco and Banque Paribas, the source confirmed. This company will assume responsibility over Won560bn of Ssangyong Cement's debts.

The source declined to comment on speculation that the Ssangyong Group is planning to spin off the oil unit and transfer management to a new company to be formed by Ssangyong Oil and Saudi Aramco.

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