It certainly seems as if Koenigsegg are leaving no stone unturned when it comes to finding more money for the Saab deal.
Koenigsegg Group is now trying to attract investors to put money into Saab with the chance of a rapid profit. According to the investment bank Carnegie Saab’s value may triple in two years even if the risk is high.
The idea is that the new investors buy minority stakes in Augie Fabel’s Dutch company Solsken BV. The company currently has 42 percent of the Koenigsegg Group and will become the largest shareholder in Saab if the deal goes off without a hitch.
According to Dagens Industri, the government requires the major shareholders behind Koenigsegg Group will retain its Saab ownership for at least seven years. But according to the newspaper others will be offered to invest in Saab through so-called arbitrage-business. They will then invest money in an early stage with the chance to sell shares at a fixed, higher price later on.
An estimation from Carnegie puts the value of Saab to between 1.4 and 1.7 billion SEK today. If the deal goes through the value will first rise to 3.5 billion SEK and in the next step to 5 billion SEK. That is the prognosis with which new, short-term investors are to be attracted with, even if the risk is high.
Joran Hagglund, State Secretary, confirms that there are ongoing discussions on admitting owners who are not long-term.
Two things to remember here:
1) This is quite possibly not unusual business practice (at least in some parts of the world)
2) The Swedish government require that the principal players are in this for the long term, which Christian von Koenigsegg has specifically stated as being the case on more than one occasion.
Perhaps some of you with international business and legal experience (I know there’s a few out there) could weigh in on the nature of this scheme?
I certainly agree with Carnegie with regards to the potential valuations of Saab as a business, some of which have been notoriously low in reports thus far.