Saab Automobile Have Reached Conditional Agreement For Sale And Lease Back Of Saab Property
Trollhättan, Sweden: Swedish Automobile N.V. (Swedish Automobile) announces that Saab Automobile AB (Saab Automobile) have reached a conditional agreement with respect to a sale of 50.1% of the shares in Saab Automobile Property AB (Saab Property) with a transaction value of SEK 255 million (EUR 28 million).
A consortium of Swedish real estate investors, led by Hemfosa Fastigheter AB (the Consortium), will purchase 50.1% of the shares in Saab Property for a total consideration of SEK 255 million, reflecting an adjustment to the transaction price for a one year lease free period. The property consists of 483,000 m2 building space. The investors have the right to purchase additional shares to increase the amount to SEK 300 million (EUR 33 million) on the same terms within 30 days after closing.
Saab Automobile will enter into a lease agreement with Saab Property for a duration of 15 years.
As joint owners, the Consortium and Saab Automobile seek to further develop the property, including a refinancing of the property at a later date when commercially feasible. Saab Automobile is being advised by Catella Corporate Finance.
In order to enable Saab Automobile to sell the property, the Swedish National Debt Office (NDO), being the guarantor of the EUR 400 million loan of the European Investment Bank (EIB), is requested to release its pledge in the shares of Saab Property. If the NDO releases its pledge in the shares of Saab Property, the guarantee of the NDO in favour of the EIB will be reduced by EUR 120 million. As a result, Saab Automobile will draw up to a maximum of EUR 280 million under the existing EIB loan (of which EUR 216.9 million have currently been drawn). A further EUR 63.1 million will remain available to Saab Automobile under the EIB loan. Saab Automobile seeks final approval from the EIB, the NDO and the Swedish government to complete the transaction which it expects shortly.
Swedish Automobile and Saab Automobile continue their discussions with several parties to secure additional short-term funding to restart production. There can, however, be no assurance that these discussions will be successful or that additional short-term funding will be obtained.
Jens Engwall, CEO Hemfosa Fastigheter AB, said: “We are very pleased with the agreement with Saab Automobile. We will continue to add value for Saab Automobile in developing the property.”
Good news!
This is very, very good news!!
+1
+2
+3
+4
+5 🙂
Finally!
To support Saab, go down to your local dealer and place an order for a new Saab, that is the only thing that can save Saab.
VM is a true hero.
Not only him.
The whole team, and even the people at Hemfosa!!!
But yes he is fighting the fight of his life!!
I’m expecting for the next news to be “Saab employees received their salaries” and after that “Saab production line is up and running” 🙂 They have to produce about 2500 cars for Chinese market only and many more for the rest of the world. People are waiting…
Excellent!! Money from Sweden, money from China and hopefully money from Russia. Production should start soon enough 🙂
David! How good to see you here.
Griffin UP!
Play it over and over people! As loud as possible!
Just listened to your tune yesterday in the car. Wonderful stuff!
Cheers/Tom
Great! 🙂
Well done!
– Even though, I am not so pleased to hear that this is not sufficient to restart production …
First things first. I would rather they restart production when they know it can keep running for awhile. I am pretty sure they don’t want to restart production only to shut it down *yet again* a few weeks later.
“We will continue to add value for Saab Automobile in developing the property.”
Nice!
I guess Saab hit rock bottom last week, so the only way now is up and away.
This is excellent news, and I hope the line starts running very soon.
Let’s hope for more good news in the coming days.
Very good news. Slowly the pieces fall in place. Now get the suppliers back on board and start production.
Nice! Hopefully the EIB and NOD will approve this deal in the next few days. Saab really needs this money.
Actually the NOD and the Swedish government already approved the deal, when Mr. Antonov was the one trying to buy the real estate. On the other side the EIB is not willing to give Saab more money because of the situation, thus it would make no sense not to release the pledge.
According to the press release the deal still needs final approval by the EIB and NDO. Let’s hope this won’t take months, but days.
So, once again the NDO holds all the cards…let’s hope they play clean.
So far, the NDO has been the good guys. Or maybe not so much good as actually just doing the job they’re supposed to do, and doing it in a rather swift way.
Really hope so, but I think they tooked to long before..
Nice, really nice! 🙂 Having echoed myself lately with “keep calm & carry on” this really made my day!
SAAB UP!
Cheers from Norway
-Olav-
Always on the longest road home when out there with my SAAB. Always!
The naysayers champagne is getting warmer again.
Saab should find a way to use the orderbook better in the future to get liquidity for production. This cannot happen ever again. Now find that CFO who loves challenges!
First off, “we” don’t have the EIB money, I wouldn’t count on them allowing Saab to draw that down anytime soon. I guess Saab will sooner refinance the loan than come to terms with the EIB.
The money from EIB won’t come until SAABs economy is better. So, no EIB money right now..
The EIB money, as I remember, were for research and developement, not to secure current financing
there are still +45M€ from the first two Pang’Da orders, if I recall correctly
But where did they go? Have they been put in the big black hole by the SAAB CEO or are they in a reserved account as payment for the actual cars?
Whew ! 🙂 But the stress remains. Now cars must be build quickly to ensure long dated financing. At present the money seems to be a pocket money compared to that what is needed. They actually have to prove with how many sold cars they can survive in the long run. Perhaps the business plan was too optimistic ?
No wonder they can’t pay the staff and parts’ suppliers!
I think (hope) it was only for the real estate deal. Never ever outsource your financial decision making. Only people with skin in the game will care and do good.
Valuation, negotiations and contracts for real estate stuff is a completely different ballgame. It’s not like selling cars, so no wonder they need external help for this.
We really need a longterm financing. I hate to see the factory start and then stop again after 2 weeks. :/
All other worries apart, imminent death seems to have been postponed.
Could we just take a second to feel good about that before we restart the Depression Autodestruct Sequence.?
“Could we just take a second to feel good about that …”
Yes, we can. 🙂
Really, good news; although expected, but it took some time.
Extremely encouraging news! This does not mean that all problems are solved, but things are definitely going in the right direction. 😀
Are they really? The EIB is evidently not going to give SAAB the next 260 MSEK until finances are in a more healthy state, the Chinese money from yesterday’s deal will only just pay the June salaries and the real estate money will secure the July and August salaries.
Today Dagens Industri reports that analysts are very sceptical to seeing a Chinese decision to invest before the end of the year.
So where is the money to actually manufacture cars going to come from?
The critical thing is that they have to manufacture cars. That will generate cashflow. Now bringing the suppliers back is the most important task.
Take it one step at a time.
Hemfosa only wanted to go through with the deal if they were more assured of Saabs longtime survival.
They seem to trust this as they have decided to make the deal.
Someone in China decided to spend a little extra on cars.
They must believe in something too.
Both parties are definitely parties who mainly belive in Money.
They have decided to go through with their deals
If there is any positive news from Saab, DI.se will find something negative to counter it. The “analysts are sceptical” story is a safe bet, you can run it over and over again and nobody will ever say you’re inaccurate or anything. It’s a bit like “Kim Ir Sen still dead, experts say”.
Wasn’t that something like 80 MSEK to suppliers, 30 in salaries and 30 in overdue bills.
With 10.000 car in the backlog (around 100 MSEK in profit) they should be able to pull this one off with additional financing coming in later.
I also expect the orderbook to double when the line is up and running again. There’s a huge demand for the 9-5 SC and 9-3 SC Griffin TTiD’s.
Not wishing to be fussy but…… there is no money here yet! Waiting for EIB and NDO….. how long will that take?
Yes, I have my doubts too.
Yes, you are right. Let’s hope this will go through, too.
But now, Olofsson cannot claim anymore that nobody wants to buy SAAB’s property [as was reported in http://www.aftonbladet.se/bil/collin/article13224888.ab%5D.
It’s getting tight for her. She has to justify why she bet on the wrong horse. And why she continues to claim that in Sweden there’s no need for SAAB.
Step by step: the Saab management seems to continue overcoming each obstacle. This strengthens my confidence that thsy will be able to reach significant critical mass to become a dormidable force in the automotive induatry.
+1 🙂
Here’s to hoping they will have consistent, strong and effective marketing/PR communications plan to say “we’re back” to the public, media and customers. Something totally different to convince them Saab is effectively reborn, not just a temporarily resuscitated zombie like it appeared until now.
true, Saab’s Corporate Identity is so poor, might be not enough for “reborning gryphon”, the brand should shine on the market, so everybody see it, it’s the only way to sell some cars,
I don’t think Saab has a problem with Corporate Identity, but rather with the USP – they can’t communicate strongly enough why it is worth it to buy a Saab despite all the negative circumstances and why Saab is a different company.
And in the sales/marketing field, for now they simply aren’t different, and definitely should be.
The USP is simple – Saabs are the best all-around cars for people who DRIVE. If you really care about what you drive and have the money, Saab is the best choice you can get. This is why once you go Saab, you rarely go back.
“You drive your Audis and BMW:s and try to be as happy with your car as I am …”
😀
Indeed; GO SAAB!
+1
Good news! Get the production line up and running and I will order a 9-5 SC. Lots of people are talking about that car now.
This is very good news . They must have confidence or they might know something we don`t know because re-leasing the property to Saab must be based on something solid. That is a lot of money to gamble if you don´t have confidence in the future. This a rollercoaster of emotions. Great team.
too little, too late. still Ponzi scheme of getting money. Money that should come from the profit replaced by “invesment” from outside.
I understand there needs to be some injection to get the company producing and going to make money since it is broke and dried up, but…
Did anyone hear when Saab wants to make profit? 2013?2014? Has anyone said what is the goal?
I am afraid I will not get 95combi this autumn, because it simply wont be made. :-/
Saab has a lot to go for it. But right now, the company is bleeding to death. The production stop should have been avoided and the focus of VM should have been on getting extra funds at a much earlier stage.
Now get production started ASAP, or get new owners through bankruptcy who can start again.
thanks for reply.
Thanks for the informative comment, Carmania.
Also very useful to quote in a Troll-defence.
Real Trolls don’t bother with the info or answers you can provide.
True…well then, maybe it can prevent a potential Troll from becoming a Real Troll. 🙂
I am not trolling. I stated my opinion. That is huge difference!
It is very simple (to say at least) to mark any other opinion than “happy excited” as troll. beside the fact it is low and unfair.
I am very concerned about Saab and sad about current situation, I genuinelly wish Saab survival and “happily ever after” , I just do not believe it any more.
And it is my right to state it (with or without reasoning why I think so). Period.
I don’t think anyone accused you of Trolling.
Carmania also stated his opinion with what he sees as facts, and Ralph liked the info.
But the fact remains that there is not money from profit, so outside investment is a must.
Long term calculation of profitability is probably hard to do right now
I do however believe with the current events that you may still get your 9-5SC.
@gannet, I was purely reacting to the comment by Carmania and didn’t say or suggest you were trolling. Sorry if you saw a connection, but there really isn’t any!
to Khrisdk 12:45 and Raph 13:36: OK, thanks guys.
Maybe GM is worried about the competition in China and Russia? GM are doing well there with for example the 9-5 cousin LaCrosse. Maybe they also don’t want Chinese manufacturers to get access to GM technology and know-how?
GM has already sold Chinese carmakers the intellectual property (engines, platforms and electronics) to the old 9-5, and GM already operates EIGHT factories in China because the Chinese government requires most foreign manufacturers to open plants in the country instead of importing goods.
Plus, GM’s objections to VA came before Chinese partnerships were even considered.
As for Russia, GM has at least one, maybe two assembly plants in Russia, and has joint ventures with Russian carmakers.
Right! GM don`t want saab car be manufactured in China.I just made a phone call to an insideman in GM China and get the news the new LaCrosse GS will be lounched soon in China,like saab 9-3 Aero, with 2.0T 274hp ,some tech from opel and some from saab.The slower saab developing the happier GM will be.They can sell their car more.If saab is landed in China .They will meet a real strong competitor.
Oh my, this is getting grotesque…
http://translate.google.com/translate?js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&sl=sv&tl=en&u=http%3A%2F%2Fwww.gp.se%2F
Perhaps they could hire the guys IAC has let go? If IAC made my 9-3’s dashboard, I’d rather somebody else started to do it!
Yes, IAC is making the 9-3 dashboard and 9-5 as well… along with most of the interior for both 9-3 and 9-5… so no Saabs without IAC producing parts…..
Are these the exact same properties that were valued at 900 MSEK when Antonov was the intended buyer? If so, they’ve lost 33 percent of their value in few months. There’s actually a danger that the EIB will say no to the deal on the grounds that Saab doesn’t get enough money, which would be extremely ironic…
Börjesson,
I earlier wondered about that, when they first mentioned around 300; a few things comes to mind, several things has changed; they’re buying around half of the shares (50.1% of the shares); also it includes: “… reflecting an adjustment to the transaction price for a one year lease free period.”
I generously estimated the value of the lease-free year to 45 MSEK, to round up the total amount Hemfosa pays to 300 MSEK. 51 percent for 300 MSEK still means a total value for Saab Property of less than 600 MSEK, compared to the 900 MSEK talked about before. If this is indeed the same property, the the drop in value is dramatic.
Sorry, make that 50.1 percent. The conclusion remains the same, though!
Indeed. But I don’t have much info at the moment.
“I generously estimated the value of the lease-free year to 45 MSEK, to round up the total amount …”
Ehm, that’s roughly 90-95 SEK/square metre; a bit low don’t you think …? 🙂
Saab weren’t exactly in the best negotiating position….
I have no idea how many square metres Saab needs for the production, nor what the going rate per m2 should be. But even at this rate, the full proceedings of the sale will have been repaid in rent in only seven years. That would seem like a terribly bad deal to me, so I’m hoping that the rent is actually a bit lower than 45 MSEK.
A 7-year yield on an industrial property is a relatively fair deal, especially that it apprently requires investment in that period and probably isn’t so easily commercializable, otherwise Saab would have already done more of it.
don’t forget that antonov wanted an additional stake of 6% in saab. that’s why the deal with antonov was blocked.
What’s the added value they want to develop? Use facility to produce other goods?
Since they buy 50.1% of the shares, I guess that they pay 50.1% of the value…
Wish things would moved on soon, orders being cancelled already. The word is spreading and it seems only the uninformed are buying at the moment. Enquiry levels are at an all time low …..doesnt get any lower than zero! ……trying to stay positive but i cant see a way back.
OMG how is this good news? 255 million i not nearly enough. first it was 800 million, then 300 now 255. Saab is being sold of pice by pice for lunch money.
The deal is for 50,1% not 100%.
There is also a lease free year included.
If NDO and EIB accepts the deal, it is because it is a fair price at the moment.
more breathing space… experienced coo and ceo required asap, solid equity alliance with a substantial forward thinking manufacturer required, total revamp of sales and marketing required including addressing msrp, $72k plus local taxes for a 9-5 sedan with miniscule 17″ alloys and 220hp will not build sales here in Australia, Saab keep telling the world they can deliver the goods so lets see them…
Lots of posts criticising trolls on here and I think that’s a large part of the problem.
According to the t-shirts they actually make the cars so we should be more supportive :p
http://saabdesign.spreadshirt.net/made-in-trollhaettan-by-trolls-A11217134
This indeed exciting news. We can now put the bottles down. My Big question is who are the new managers who are running the everyday operations of Saab. They are needed to replace those who have left.
Pure speculation here, but with regard to the business plan and perhaps revised break-even levels; didn’t they say that they had worked on cutting costs during the last year? That said, things have definitely changed since then.
Good summary of the situation, plus angry criticism of the government, in Dagens Arbete:
http://dagensarena.se/reportage/%E2%80%9Ddet-ar-ett-politiskt-misslyckade%E2%80%9D/
Sorry, make that “Dagens Arena”.
+1
+1
“Get over it – we’re here to stay.”
😀 Indeed!
+1
This year started them off in the right direction. The UK market was steadily building up momentum, and new products are in the pipeline.
Koenigsegg’s business plan had breakeven set at 120k. VM and JÅJ managed to knock it down to somewhere around 80k.
As for profit, the last profitable year was 2007 — at least if you count the sales of Saabs in north america (which I find relevant). That was with a 10 year old 9-5. The product lineup now is much different (and improved) and will continue to improve.
Furthermore, 2007 also happens to be the last year before the massive recession in the US (which has adversely affected markets internationally, to say the least). Looking at the latest sales data for Saab, note there were some huge spikes — to me this is a clear indication that people’s interest in Saabs has increased, as the economy has been steadily improving. Unfortunately, that wasn’t enough to overcome the damage done by the poor economy in 2008, 2009 and 2010.
Great news!