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SEOUL, Nov 30 (Reuters) - French auto maker Renault has submitted a letter of interest to buy a major stake in South Korea's Ssangyong Motor Co , an official at Renault Samsung Motor Inc said on Sunday.
"The parent group has submitted a letter of interest for Ssangyong Motor," said the official at Renault's South Korean unit. The official, who declined to be named, could not provide details immediately.
Ssangyong Motor, a sports utility vehicle maker, has said its creditors would sell 55.4 percent of the company via an international auction.
The car maker, spun off from the now defunct Daewoo Group in 2000, has been under a creditor-led debt restructuring programme since December 1999.
A Ssangyong Motor spokesman could not confirm Renault's interest but said a preferred bidder would likely be chosen around December 20 for exclusive negotiations.
Interested investors must submit buyout proposals by December 11, the Ssangyong spokesman said.
An investment by Renault in Saangyong would mark another in road by Europe's fourth-largest car maker into Asia's auto industry.
Renault has successfully turned around Japan's Nissan Motor Corp from near bankruptcy in the late 1990s to the world's most profitable car company in terms of operating margins.
It expects its 44.4 percent stake in Nissan to contribute 1.706 billion euros to Renault's bottom line this year.
SHARES TRENDING UP
Renault bought the bankrupt auto unit of South Korea's Samsung Group [SAGR.UL] in 2000. Renault Samsung is one of South Korea's smallest automakers and offers two passenger car models, which are mostly sold domestically.
Korean media had earlier reported India's top truck and bus maker Tata Motors Ltd would also likely bid for Ssangyong Motor, but a Tata Motors spokesman said the company was not interested.
Ssangyong, which makes Rexton and Korando SUVs and sells most of its vehicles in the domestic market, reported a 77 percent tumble in its third-quarter operating profit due to a slow South Korean economy.
Creditors acquired a controlling stake in Ssangyong Motor after a $1.1 billion debt-for-equity swap to salvage the debt-ridden auto maker.
Ssangyong Motor shares last traded at 8,620 won each on Friday, up 1.5 percent on the day and up 72 percent since the end of 2002.
Renault shares closed on Friday at 55.45 euros, down 0.9 percent on the day but up 24 percent since the end of 2002.