Saab Announces Sale to Chinese Companies
Swedish automaker Saab is sold to Pang Da and Youngman.
Web2Carz Senior Writer
Published: October 28th, 2011
Saab Automobile’s parent company, Swedish Automobile N.V. (Swan) announced today that it “entered into a memorandum of understanding” with Chinese companies Pang Da and Youngman for the sale of 100% of the shares of Saab Automobile for the price of 100 million Euros (approximately $142 million).
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According to the company’s press release, “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 consideration of EUR 100 million will be paid in installments. An important consideration for Swan to enter into the transaction is the commitment of Pang Da and Youngman to provide long term funding to Saab Automobile.
“The administrator in Saab Automobile’s voluntary reorganization, Mr. Guy Lofalk, has withdrawn his application to exit reorganization. The MOU is valid until November 15 of this year, provided Saab Automobile stays in reorganization.”
This is a bit of a flip-flop for the Swedish Automaker, which only days ago announced that it had terminated a deal with Pang Da and Youngman.
According to the earlier press release, “[Saab] took this step in view of the fact that Pang Da and Youngman failed to confirm their commitment to the Subscription Agreement and the transactions on the agreed terms contemplated thereby as well as to explicit and binding agreements made on October 13, 2011 related to providing bridge funding to Saab Automobile AB while in reorganization under Swedish law.
“Pang Da and Youngman have presented Swan on October 19 and 22 with certain conditional offers for an alternative transaction for the purchase of 100 percent of the shares in Saab Automobile which are unacceptable to Swan. However, discussions between the parties are ongoing.”
Earlier this month Saab lost a bid for protection from a Swedish district court and was facing bankruptcy.