Ruia Group has started the process of due diligence on the cash strapped Korean SUV maker Ssangyong Motors. Chairman of the group Pawan Ruia told, “Whether we bid or not will depend only after the due diligence process is over. We will bid provided we find the target (Ssangyong) is such that we would be able to turn it around”.
Earlier this month the Korean car maker, in which China’s SAIC Motor Corp holds 10 per cent stakes, had short listed six out of the seven companies that had submitted the letter of intent to purchase the struggling company.
Another Indian car maker, Mahindra and Mahindra, is also trying to purchase the Ssangyong Motors. Ruia declined to respond to analysts’ valuation for Ssangyong of Rs 2,300 crore, which was earlier reported in the media. He, however, said that the due diligence will take a period of at least 30 days.
“I can’t comment on the valuations but whatever valuations are being quoted in the media seems to be highly overpriced.”