Spyker the company that owns Saab has been saved by China’s largest listed car distributor in a $150m deal which sees it relinquish a quarter of its shares in return for investment.
Saab’s Trollhatten plant has been idle for six weeks after parts suppliers ceased deliveries because of unpaid bills in April.
China’s Pang Da Automobile Trade is to give Saab $42m immediately so the well known Swedish brand can settle its multi-million dollar debt with car parts, electricity and plant maintenance suppliers and restart production.
Analysts estimate that the $150m deal will secure production until the beginning of next year. Pang Da will now become a 24% shareholder of the company – the latest move by a Chinese company to become a major shareholder in a front line car manufacturer.
Spyker’s deal with Pang Da comes after another partnership with Chinese manufacturer Hawtai Motor Group fell through last week. It is believed that the Chinese government did not approve the deal which would have seen Hawtai take a 29.9% stake in Saab for $221.7m.
The arrangement with Pang Da sees the companies set up a 50/50 JV in China to sell the Saab cars. The pair are also said to be exploring the possibility of manufacturing under the JV name in the country.
Pang Da CEO Pang Qinghua said: “Having just gone public ourselves three weeks ago, we are delighted to have the opportunity to become a substantial shareholder in Spyker, Saab’s parent. We very much look forward to collaborating with
Saab’s management to successfully enter our promising home market.”
Spyker’s CEO Victor Muller added: “Both parties are confident that this partnership allows Saab Automobile and Pang Da to create a strong business, initially in the distribution and subsequently in the manufacturing of Saab vehicles in China.
“Pangda is a forward-looking, profitable and well-capitalised public company that, as the single largest automobile distributor in China, sees enormous potential for our brand in their home market.”
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