Troubled carmaker SsangYong Motor has been acquired by a South Korean consortium led by Edison Motors in deal reported by Yonhap to be worth 304.8 billion won (around RM1.07 billion or USD255 million).

This comes as a court gave its approval for the acquisition on Monday, with part of the money being pumped in meant to repay some of the carmaker’s debts. As of now, Edison, an electric bus and truck maker, said it has paid 10% of the acquisition money and secured the remaining 90%.

The company has also agreed to lend 50 billion won (around RM176 million or USD41.9 million) in operating capital to SsangYong to keep things running in light of the extended Covid-19 pandemic and low sales.

Moving forward, Edison will submit its rehabilitation plans for SsangYong to the courts by March 1 and will set up a special purpose company to raise between 800 billion and one trillion won (around RM2.8 billion or USD670 million) later this year. The funds will be used to invest in a stake of SsangYong and kickstart a turnaround within three to five years.

The plan is to transform SsangYong into an EV-focused carmaker over the next few years, with 10 new EV models by 2022, 20 by 2025 and 30 by 2030. Among the models in the pipeline include the “Smart S,” “Smart E,” and “Smart X.” Edison’s goal is to take on and “overtake Tesla” as well as become the “Apple of the EV industry.”