As we reported below Youngman’s delegation has met the receivers today for further negotiations based on their indicative bid. A short quote from the report at di.se shows that they seem to be one of the parties who are very eager to get a deal done:
“They’d rather not go home without getting the green light that they can buy,” says a source familiar with the process.
I know, di’s sources are infamous but let’s just go with them here.
Pang Qingnian told P4 West on Friday that the company has a plan and is hopeful to get the chance to buy Saab.
“We will do our best anyway. If Sweden gives us the opportunity to buy Saab, we will certainly do our best to revive Saab.”
But the administrators have multiple bids to consider. Next week, they meet with more stakeholders. Among other things, stated Indian Mahindra that they made an indicative bid.
Youngman’s indicative bid shall be around two billion crowns. One source describes the first offer is consciously laid low. Youngman has not counted in the profitable parts company Saab Parts, in which the state has assets of 2.2 billion crowns. A final bid will therefore be significantly higher.
From the last paragraph one could assume that the bid to buy Saab as a whole should at least be around 4.2 billion crowns plus additional funds to run the company and develop new models. In Youngman’s case those additional funds were said to be 12 billion Swedish crowns. I wonder how long that amount would have to last for the task of developing a complete model range is anything but cheap and additionally those first years until sales numbers reach a certain point will burn quite a bit of cash.
12 billion crowns translate to about $ 1.8 billion or 1.36 billion Euro. While being a huge sum when lying on a table it is burnt quickly when running a car company. So I bet the receivers want to hear how every bidder can handle those initial losses as noone wants to find Saab in a deja vu in two years again. Even more as with most likely three remaining bidders there is a choice.
The receivers are doing a good job so far. Things are quietly running. It can surely be frustrating for us who want news but it is good for the process itself. Zamir Ahmed also told us he was very satisfied with their work. After the Lofalk sitcom we experienced last year this is pretty encouraging.
Youngman want a quick decision. Whilst this is understandable I don’t think the receivers are willing to take any pressure from that. Everybody in there, the administration as well as the bidders are aware that time is crucial. I’d hope that this will lead to straight talks without playing games. And in the very end to the best possible outcome for Saab.