Ssangyong board approves paid-in capital increase

Ssangyong Motor, an affiliate of the Mahindra Group, announced that a Board of Directors’ meeting ad approved a paid-in capital increase of KRW 80 billion to raise investment funds. The company will issue 14,545,455 new shares through third-party allotment, increasing the company’s paid-in capital by 11.9pc (current shares stands at 122,674,641). The issue price will be KRW 5,500 per share with payment expected on May 22, 2013 and listing expected on June 7, 2013. The Board resolution will result in a capital increase from the current KRW 613.4 billion to 686.1 billion. With the debt to equity ratio going down and liquidity increasing, the company’s financial strength is expected to improve significantly. Ssangyong will use the funds from this capital increase to invest in new product developments such as small CUV models. Dr. Pawan Goenka, Chairman of the Ssangyong Motor board, said, “This paid-in capital increase reflects Mahindra’s strong commitment to support Ssangyong Motor in its efforts to achieve an early turnaround.”