As we’re nearing crunch time on the Saab sale, I figured it might be a good time to post an update as to the situation.
There are several important events that we’ll be waiting on over the next few days.
The European Investment Bank approved Saab’s loan application back in October 2009, however a review has to be undertaken in order to approve Saab’s new ownership group, etc. It shouldn’t be a full review from scratch, however, but whilst the loan is primarily based on Saab’s business plan, the ownership structure is a material part of this and therefore the application has to reviewed in that light.
The European Union has given it’s tick of approval to the loan guarantees proposed by the Swedish government, which is one hurdle out of the way.
The only problem is that the Swedish National Debt Office hasn’t finished it’s final review of the Spyker ownership group, either. The Swedish government did make a preliminary offer of loan guarantees when the sale to Spyker was first announced, however these were subject to a satisfactory outcome of the full review.
Swedish National Debt Office staff have said they don’t foresee any big problems and they’re aware of the timetable.
- European Union – done.
- European Investment Bank – waiting
- Swedish National Debt Office – waiting
Spyker have had to do some tumble-turns in the last few weeks in order to get things…..in order.
Much to their own disappointment, arrangements have been made for the Antonovs to be been sidelined from their Spyker ownership stake.
Spyker initially secured funding from the Global Emerging Markets fund (GEM) for $25million, however it seems that in recent days, that line of credit has been replaced by convertible debt, provided by Hereema. GEM are a rather aggressive financier and their involvement may have been viewed as less than ideal by the powers that be.
Spyker still have to find another $24million, to be paid to GM in the middle of the year, but covering this amount is not considered to be a problem.
On February 12th, Spyker shareholders will sit in on an Extraordinary General Meeting, the agenda for which is included after the jump. The primary purpose of the EGM is twofold:
- To approve the proposed purchase of Saab Automobile
- To approve amendment to the company’s articles of association to accommodate a corporate name change, an increase in share capital and amendment to rights priorities.
It’s just a guess, but I’d say both of these should meet with the approval of shareholders.
So, in a nutshell, we’ve got two approvals yet to come, from the EIB and the Swedish Debt Office.
It’s be nice if they came in prior to voting at the Spyker EGM.
Then it’s on to closing the deal with GM on Monday 15th February.