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. Last Updated: 07/27/2016

Renault Makes $570M Bid For South Korean Samsung

SEOUL, South Korea -- France's Renault SA has offered to pay $560 million to $570 million to take over South Korea's ailing Samsung Motors, an official at Samsung's main creditor, Hanvit Bank, said Saturday.

"As far as I know, Renault has offered to pay between $560 million and $570 million to our negotiators," the bank official said.

He said 16 local creditor banks for Samsung would hold a meeting Tuesday to decide on Renault's offer. "Any final decision on the deal will be announced after the meeting," he said.

If Renault's offer is rejected, the two sides would likely enter another round of negotiations to fine-tune remaining differences, including the financial terms, he added.

Another Hanvit Bank official said the deal would likely be ratified at the meeting as the prices offered by Renault appeared to be "reasonable."

Renault and Samsung's local creditors met in Paris on Thursday and Friday, and a Renault spokesman said the two sides basically struck a deal to take over the ailing Korean carmaker.

The spokesman also said Renault was not interested in assuming some of Samsung Motors' debt as some reports have suggested.

But the Hanvit Bank official said there would be a debt element in the deal. "As Renault would not pay all the money in cash, they would have to take over some debt in one form or another," the official said, declining to elaborate.

Local media said Renault would likely pay $100 million in up-front cash, with the remainder to be absorbed by the French firm in debt or paid back from profits generated by the revived company.

In March, Renault proposed a joint venture with the Samsung Group, with the French carmaker taking a 70 percent stake and Samsung 30 percent.

But a Samsung Group official said last Wednesday he understood Renault would take more than 70 percent in the joint venture, with Samsung less than 20 percent. Creditors would be left with the remaining stake.