It seems that sticking to the old understanding did not work out after all for Saab owner Swedish Automobile. The Chinese firms that were supposed to offer credit must have taken one quick look at the bottom line and decided the only option was to buy the automaker instead of pumping money into it, but Swedish Automobile originally didn’t want to sell.
Now, the company has changed its mind, as an official statement says Swedish Automobile will sell 100% of Saab to Chinese firms Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co.
Last week’s rumors said that only a token sum will be offered, but the Saab statement says €100 million will change hands as part of the deal. This sounds like a lot of money considering the state that the company is in, and this is probably because the Swedish government is backing the deal with either financing or fiscal help.
Swedish Automobile said an important part of the deal "is the commitment of Pang Da and Youngman to provide long term funding to Saab Automobile.
But the memorandum of understanding is only valid until November 15th this year, an only if Saab stays in reorganization.
Victor Muller said today that the Chinese duo have pledged to invest €500 million in Saab. He will also stay on as a CEO until a new one can be found to replace him.
“Final agreement between the parties is subject to a definitive share purchase agreement between Swan, Pang Da and Youngman, which will contain certain conditions including the approval of the relevant authorities, Swan’s shareholders and certain other parties,” the official statement reads.
Last week’s rumors said that only a token sum will be offered, but the Saab statement says €100 million will change hands as part of the deal. This sounds like a lot of money considering the state that the company is in, and this is probably because the Swedish government is backing the deal with either financing or fiscal help.
Swedish Automobile said an important part of the deal "is the commitment of Pang Da and Youngman to provide long term funding to Saab Automobile.
But the memorandum of understanding is only valid until November 15th this year, an only if Saab stays in reorganization.
Victor Muller said today that the Chinese duo have pledged to invest €500 million in Saab. He will also stay on as a CEO until a new one can be found to replace him.
“Final agreement between the parties is subject to a definitive share purchase agreement between Swan, Pang Da and Youngman, which will contain certain conditions including the approval of the relevant authorities, Swan’s shareholders and certain other parties,” the official statement reads.
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