Reuters on the Chinese offer and NSC

Talking to Reuters Victor clearly states that there has been a Chinese offer to take over Saab completely:

The chief executive of Swedish Automobile , owner of troubled car maker Saab, said on Friday he had turned down a full-blown takeover offer from China’s Zhejiang Youngman Lotus Automobile Co and Pangda Automobile Trade Co .

“The token offer was unacceptable because it would trigger every conceivable change of control clause and that would possibly mean the end of Saab,” Swedish Automobile CEO Victor Muller told Reuters in a telephone interview.

Muller would not disclose the value of the offer. As the two Chinese car makers were still interested in Saab, they should stick to the terms of a deal signed in July that would see them take a combined 53.9 percent stake in Amsterdam-listed Swedish Automobile, he said.

Both Youngman and Pangda declined to comment.

This rises the one big question: what or who changed their mind? On the other hand the Wall Street Journal article featured in the last post would indicate that this is mainly driven by Youngman. But what can we be sure of…?

In the same article there are some encouraging quotes from Alex Mascioli, the head of North Street Capital:

This has not discouraged race car aficionado Alex Mascioli, who told Reuters on Friday that his U.S. investment firm, North Street Capital LP, was pressing ahead with a $70 million deal that will allow Saab to keep the lights on.

“I expect the deal to go ahead. I’m willing to do what I can with my resources for Saab,” North Street Managing Partner Mascioli said in a telephone interview.

And further on:

“It’s Victor’s call. He has put a lot of effort into trying to save this company. At the moment there is a deal with the Chinese,” Mascioli said when asked if he was prepared to step in should the deal with Pangda and Youngman fall through.

Saab is an undervalued asset that will survive and from which Mascioli expects to turn a profit, he said, adding that North Street had the capacity to take over Saab should it wish to do.

It surely looks like NSC are about to take an active role in the process of saving Saab. But still this is a new development we don’t know too much about yet. So let’s (again) keep calm and carry on until we get more details on what is happening now. Be sure that we are watching this closely.

SaabSouth
Member
4 years 11 months ago

Anybody would be better than the Chinese, they have no scruples and would not be good for the long run.

TurboLover
Member
4 years 11 months ago

Please, you do not know that. AND lack of scruples can be found in all countries.

jonthaa
Guest
4 years 11 months ago

A bit short-sighted, isn’t it?

Jeff
Member
4 years 11 months ago

Great update Till. There’s a lot of moving parts here and it’s almost too complicated to speculate on a reliable picture of the final outcome.

To all the experts out there who are trying to guess what the end result of this will all be, ask yourselves if you saw North Street entering the picture even one month ago. This is a highly unpredictable situation, we can just hope that Saab stays as close as possible to its current structure once it’s over.

Troels, Denmark
Member
4 years 11 months ago

I dont really understand this: If VM sales part of Saab to NSC instead of (whole Saab or part of) to PangDa/Youngman: What about the car-deal with PangDa then and what about the future on the chines market ??? Matters that in the current situation seems to be of the greatest importance for a future for Saab.

Saabim
Member
4 years 11 months ago

Does it be better partnership. Fingers crossed. Positive thinking 🙂

RS
Member
4 years 11 months ago

So everything was going according to plan until GL went to China to ‘have a chat’?
The Swe Govt couldn’t let keep VM own 46% of the company now could they? What were they expecting. Victor to just lay down and die…

So the Chinese distribution deal went to hell as well? VM needs to get in 500 million euro (from the US). Pay everybody and start production or sell Saab before he and VA lose everything they’ve put in SWAN.
Just my two cent.

Saabim
Member
4 years 11 months ago

1+ 🙂

SaabSouth
Member
4 years 11 months ago

I still think there is a viable solution. Pang Da handle all Chinese distribution, NSC put in the money fora 55% share factory gets up to full capacity 130000 units – simples

Jeff
Member
4 years 11 months ago

I think you just described very broadly plan B (or N by now). This may be where things are headed.

Sadim
Member
4 years 11 months ago

And where did even some kind of realism go to this morning? PangDa and Youngman are OUT according to all sources and NSC has NO track record of investing, they have not even existed for a year yet. And as things are now SAAB will not sell 130.000 cars for many years.

I am convinced that the ONLY way ahead now is to take up on The Chinese offer of investing 5,5 BSEK in SAAB. Muller is expendable. The alternative is going bust, The courts will never accept another period of reconstruction.

rune
Member
4 years 11 months ago
In the first sentence you say PangDa and Youngman are “OUT”. In your final paragraph you argue that the Chinese offer should be accepted. So, are they out or not? SWAN’s shareholders will not accept a token offer and the strings attached to Saabs are such that a takeover is most likely not plausible. I’d love to see someone swoop in and rescue the day, but the evidence suggests that the route you suggest has problems of its own. I _guess_ Youngman could go all in on the Phoenix platform which I suppose/believe/guess/hope has a bare minimum (if any) GM… Read more »
Sadim
Member
4 years 11 months ago
Rune, having re-read what I wrote, I agree with your desire for clarification. What I mean is the the Chinese are OUT of the old plan of the (roughly) 50/50 deal with SWAN. But IN when it comes to 100% Chinese ownership. I can add that I believe folks will have to take sides within a couple of days – either for SAAB, or for Muller. The days of Muller rescuing SAAB are over. As I have stated before: Neither the court in Vänersborg nor the appeals court will accept a further period of reconstruction. Assuming the Chinese offer to… Read more »
rune
Member
4 years 11 months ago

I would be surprised if not most of the people reading this site are on Saab’s side.

It would be very interesting to learn what GM thinks of all this. If GM wanted (read: would have accepted) a strong Chinese owner, one would think they would have put more effort into such a track two years ago.

SaabSouth
Member
4 years 11 months ago

Sadim, I am not sure you have all the facts, how many units would be sold into China? On top of the USA , UK and sweden volume 130k would be achievable in year 2. And why would Pang Da not want to be the only suppliers of Saabs to a very premium led Chinese market…. That is realism! VM can only make proper money if Saab start building and selling cars again!

KarlR
Member
4 years 11 months ago

New interview on Svd.se with Guy Lofalk where he states VM knew everything! I think its Vm that just want his best not SAAB. Other inside wispers say the samething. 🙁

Audun
Member
4 years 11 months ago

If Guy Lofalk went behind SWANs back two times he can/will prbably also lie and tell that SWAN knew about it.
It looks like there has been some dirty play, and that also swedgow has something to do with it.
IF VM knew why would SWAN want to replace Guy Lofalk?

KarlR
Member
4 years 11 months ago

Because he put up demands on VM

MK
Member
4 years 11 months ago
Well.. if you read what Muller said for TTela: “- We had a deal with Youngman and Pang Da for a continuation. Then flew Guy Lofalk to China and met with companies and after they declared that they wanted to take over from Swedish Saab Automobile. – But guess what: they had not thought through the whole thing. If the Chinese would take such a large stake in Saab would all regulations of GM, BMW, the EIB and the National Debt Office strike. It simply would not go through, it would simply end for Saab.” It had not been for… Read more »
KarlR
Member
4 years 11 months ago

Could also be that they knew about it and had a solution.

Khrisdk
Member
4 years 11 months ago

If they knew about it and had a solution, then they are very clever.
Noone has ever gotten a straight answer from any of those parties.
Unless off course you want to revive a conspiracy theory of SweGov aiding anyone but VM and VA and wanting to force them out at all costs?

tomas
Member
4 years 11 months ago

As a person on the outside without all the details it seems impossible to know whats really going on, one thing is clear though, someone is lying. Victor Muller stated “Guy Lofalk went behind his back not only once, but twice”, and Guy Lofalk states in that svd.se article, “Victor has been aware of what i have been doing all the time, even when i went to Peking last week.”

Lets hope PangDa/Youngman has some decency to honor previous agreements!

Khrisdk
Member
4 years 11 months ago

Don’t expect decency in usiness.
Expect everybody to be interested in making a deal at the minimum price.
The part of the minimum price is where we are now.
Personally I think it was very clever of VM to add NSC to the equation.
It makes it a little easier for PangDa/Youngman to honor the previous agreements
Applied pressure sees to be the order of the day.

fido
Member
4 years 11 months ago

Let’s hope NSC has enough money to take over SAAB.
If only to put pressure on Youngman, that will not work.
Youngman can hold money as long as it wish.
But SAAB has no time to wait!
The initiative is not in SWAN’s side.

Troels, Denmark
Member
4 years 11 months ago
I dont like this playing around with Saab due to different interest and hidden agendas. I find that those dirty games in it self becomes another thread to Saabs main-values: Independent thinking, free spirit, integrity and honest design. I still hope it will all turn out to the best for Saab, since there is no other person-car-brand with those clear values and this spirit and innovative power. Off- course right now it is a fight to make the company survive financially – but hopefully someone will be aware that also the spirit and way off thinking is something that need… Read more »
jouni72
Member
4 years 11 months ago

I agree, just like patient is in the surgery room about the die and doctors around him are arguing who is the best one to make a surgery… I don´t like this kind of game too and it is not good for Saab. But I still keep positive, I have always been.

Audun
Member
4 years 11 months ago

I think you mean: “I find that those dirty games in it self becomes another threath to Saabs main-values: Independent thinking, free spirit, integrity and honest design.”

I completely agree with you!

Audun
Member
4 years 11 months ago

It was a reply to Troels, Denmark

Troels, Denmark
Member
4 years 11 months ago

Audun – you are right – Sorry for my bad English spelling.

Ken H
Member
4 years 11 months ago

Victor Muller spent endless hours and days hammering out the deal with GM, and it has been described as an extremely intricate process with intellectual and financial rights and claims in every direction.
How could the administrator expect to simply sell the whole company to China, just like that?
Is it any wonder VM could not agree to this?

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