SAIC Reduces Stake in Ssangyong to 3.79%

Update on August 31: By the end of August 2010, SAIC had given up all its stake in Sssangyong.

July 15: As bidders compete to own Ssangyong, Shanghai Automotive Industry Corporation (SAIC), the former majority shareholder, cuts its stake in the troubled Korean automaker to 3.79%.

SAIC bought 51.3% of Ssangyong in late 2004, but suffered massive losses as the latter went into bankruptcy protection in 2009, which reduced its stake to 11.2%. Further selling-down from 3.79% is also expected, as SAIC seems to have lost all interest in Ssangyong and wants to concentrate on its own brands–MG and Roewe.

In the past few months, several companies, including RENA.PA, MAHM.BO, have submitted their bids for a controlling stake. Hyundai-Kia is expected to join them soon. A preferred bidder will be announced in August.