Some companies which have been regarded as strong potential buyers such as SKC, KCC and Iljin Materials didn’t place bids in the final round until the deadline on Dec. 14.
It is in stark contrast to industry watchers’ previous forecast that the bidding race would heat up as it is one of rare small and medium-sized firms that have steadily posted solid earnings.
Shares of Ssangyong Materials shed 14.3 percent to trade at 3,745 won at 11:50 a.m.
The company supplies its core product, magnets used in motors, to major global auto parts companies including Robert Bosch and Valeo Service
It posted 106.5 billion won revenue and 6.1 billion won operating profit in 2015.
Its parent company Ssangyong Cement Industry has put it on sale to dispose non-core businesses as it was acquired by private equity investment firm Hahn & Company last year.
Samil PwC, the lead manager for the deal plans to select a preferred bidder and sign a stock purchase agreement in two weeks.
By Park Han-na (hnpark@heraldcorp.com)