KG Mobility has been selected as the final acquirer of Edison Motors by the bankruptcy court (Changwon District Court).
Edison Motors has been undergoing a restructuring process since the court’s decision to open corporate rehabilitation proceedings in January, and the M&A process was underway using the ‘stalking horse’ method. Following the submission of Letters of Intent from interested investors in March and subsequent due diligence, KG Mobility was selected as the preferred negotiation party after signing a conditional investment agreement.
With KG Mobility now confirmed as the final acquirer, Edison Motors will draft a rehabilitation plan to submit to the court. If creditors agree to the rehabilitation plan during the creditor meeting, the rehabilitation process can be concluded.
As a specialist in SUVs, KG Mobility plans to utilize its automotive technology development capabilities, growth know-how, and successful experiences from the rehabilitation process to develop Edison Motors into a company that can contribute to social development.
To achieve this, KG Mobility emphasized the following plans: ▲Overcoming limitations of a portfolio primarily focused on large electric buses by expanding product lines to include medium/small trucks and buses ▲Strengthening collaboration in research and development and procurement sourcing ▲Improving profitability through increased efficiency ▲Expanding into global markets to boost sales volume, ultimately fostering Edison Motors’ transformation into a comprehensive commercial vehicle company.
They expect to leverage KG Mobility’s global network to move beyond a domestic market-focused business structure, facilitating expansion into ASEAN and other global markets in the shortest time possible.
Additionally, for improved profitability through enhanced efficiency, they plan to increase direct production efficiency at Edison Motors’ factories while enhancing purchasing synergies through shared supply chains with KG Mobility, alongside extensive collaboration in research and development to shorten new product development cycles and reduce costs.
KG Mobility stated, “To restore customer trust and achieve early normalization of management, we will cooperate to conclude Edison Motors’ rehabilitation process as quickly as possible. Most importantly, we expect KG Mobility and Edison Motors to create synergies in various areas such as purchasing, production, R&D, and domestic and international sales through collaboration. After the acquisition, we will focus on recovering the sales network, increasing sales and profitability, and expanding into global markets to develop Edison Motors as an environmentally-friendly comprehensive commercial vehicle company that contributes to societal progress.”
Contact: 이상진 daedusj@autodiary.kr