Geely Wants to Acquire Saab?
This story has been coming at us for the past 24 hours now and while I’ve been reluctant to cover it since everyone in front of and behind the scenes is denying it, but Dagens Nyheter is reporting on their website that Geely wants to buy Saab. According to their source, a representative from Geely approached Guy Lofalk, the court appointed administrator for Saab, to negotiate a deal. Today, Geely has emphatically denied these rumors.
Interestingly, Eric Geers fanned the flames a little bit though when he said in a telephone interview which Bloomberg reported on, ““Several companies are showing interest in Saab right now…We of course have a binding agreement with Pangda and Youngman.” Why would he want to do that? Well, Youngman’s money still hasn’t been transferred even though it was promised to come through over a week ago. Which leads us to the second story…
Youngman’s Sluggish Behavior
Youngman’s had agreed to send Saab 70 million Euro by in mid-September as was part of a license agreement with Chinese car firm Zhejiang Youngman Lotus Automobile.
“The money has not come in yet. We originally thought it would take about two weeks. The process is ongoing, and we will give information as soon as we have the money,” Saab spokesman Eric Geers told Reuters. “It is hard to say exactly when this process will be finished. But it will be soon,” he added. What should we take from that? Just as he always says: the money will arrive soon. Reports of another story are stressing Saab out a little more.
We all know that the NDRC is the crucial unknown piece of the puzzle that Saab, Youngman and Pang Da need to gain approval for the deal to go through. But they also need approval from the Swedish NDO and government, and that approval depends on information that Youngman is slow to report. Since they’re privately owned, they don’t need to disclose this information like Pang Da does (which has readily given it).
In a story from di.se, Anna Petre explains that they are working through this issue and hope it won’t become a problem. “It is slow, especially for family-owned Youngman who are not accustomed to disclose sensitive information about economic figures such as sales and profits,” says Anna Petre, director of community relations at Saab, to Di. “I asked to get a revised financial statements from them. And they asked what it meant that it would be revised. They work with other terms and in any other way than we do,” she added.
Again, I don’t think we should be too worried about either of these issues, just that this is what is going on behind the scenes yet reported publicly. There’s also a healthy amount is going on that we can’t really report on that gives us enough confidence not to report on this story as breaking news.