The final bid deadline for troubled South Korean carmaker Ssangyong Motor (003620.KS) worth up to $500 million has been extended by three weeks, the firm said on Tuesday, sending its shares down 4 percent.
"The decision is to reflect bidding participants' demand for more time for due diligence and detailed documentation including funding plans," Ssangyong said in a statement.
Sale advisers for the SUV maker had planned to receive binding bid proposals by July 20 and six groups including Franco-Japanese alliance Renault-Nissan(RENA.PA) and India's top utility vehicle maker Mahindra are reviewing Ssangyong books.
A Seoul court kicked off the sale process for the cash-strapped SUV maker in May and had planned to pick a preferred buyer during August.
"The news has prompted concerns...whether the bidding process is going smoothly. And given Ssangyong Motor shares' substantial recent gains, some investors are opting to lock in profit," said Lee Sang-hyun, an analyst at NH Investment & Securities.
Shares in Ssangyong Motor, which counts Barclays Bank and China's SAIC Motor Corp as its top shareholders, were down 3.79 percent at 13,950 won, but still up nearly 42 percent since late May.
Samjong KPMG and Macquarie Group, which are handling the sale, sent potential bidders to submit their binding final proposal by Aug. 10, Ssangyong said.
The participation of high profile international firms in the auction was seen as a potential threat to the dominance enjoyed by South Korea's top automaker Hyundai Motor and its affiliate Kia Motors, not only on their home turf but also in export markets.
The auction also comes as Ssangyong, South Korea's smallest automaker, is on a firm recovery path since it was put under the court-led restructuring plan in early 2009, hammered by one of the industry's worst downturns.
The maker of Rexton and Kyron SUVs and Chairman sedan reported a 34-fold rise in monthly sales to a record last month, powered by domestic consumption recovery and strong export growth.
