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According to a statement made by South Korea’s Chohung Bank official to Korean newspapers, Changhong Bank and Ssangyong will sign a memorandum of understanding in one month to sell the SUV producer it controls. And Jae-Yoo Kim, vice president of Changhong Bank, told Dow Jones Financial News that it will soon decide who is the preferred acquirer. Shuanglong’s creditors hope to sell this company to SAIC. Last month, Ssangyong’s creditors received a bid from China’s Shanghai Automotive Industry Corporation, which is another company that has participated in bidding since China’s BlueStar and several Hong Kong and US investors. After the Bluestar Group became a priority purchaser in December last year due to disagreements in the purchase price and failure to obtain support from the Chinese government, the Ssangyong creditors began to resell their 48.92% Ssangyong shares. In December last year, SAIC obtained approval from the National Development and Reform Commission of China as the sole Chinese purchaser of Ssangyong Motor Company. Since Ssangyong's separation from the bankrupt Daewoo Group in 1999, it has performed well, but the company’s debt burden is still heavy if it is to operate independently for a long time. The current annual production capacity of Ssangyong is 180,000 vehicles. (Wolf) Beijing Youth Daily Automotive Age
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