Ssangyong says Mahindra & Mahindra denies report on plan to hike stake

Mahindra and Mahindra (M&M) has denied a report that it plans to increase its stake in South Korean automaker Ssangyong Motor Co Ltd.

CNBC-TV18 had on Wednesday said the Indian auto major is planning to raise its stake in the company to around 90 per cent to 95 per cent by year-end, without citing where it obtained the information.

Putting speculations to rest, a spokesman for Ssangyong Motor on Friday said the Anand Mahindra-led company has denied the report. An official for M&M was not available to comment when contacted by Reuters.

M&M currently owns 72.85 per cent in Ssangyong.

The report sent Ssangyong Motor shares surging 14.6 per cent on Thursday and 13 per cent higher earlier on Friday. They later pared the gains to trade 8 per cent lower in the day.

(Reuters)