Press release: Swedish Automobile Signs MoU With Pang Da And Youngman For The Sale Of Saab Automobile And Saab GB

Trollhättan, Sweden: Swedish Automobile N.V. (Swan) announces that it entered into a memorandum of understanding with Pang Da and Youngman for the sale and purchase of 100% of the shares of Saab Automobile AB (Saab Automobile) and Saab Great Britain Ltd. (Saab GB) for a consideration of EUR 100 million.

Final agreement between the parties is subject to a definitive share purchase agreement between Swan, Pang Da and Youngman, which will contain certain conditions including the approval of the relevant authorities, Swan’s shareholders and certain other parties. The consideration of EUR 100 million will be paid in instalments. An important consideration for Swan to enter into the transaction is the commitment of Pang Da and Youngman to provide long term funding to Saab Automobile.

The administrator in Saab Automobile’s voluntary reorganisation, Mr. Guy Lofalk, has withdrawn his application to exit reorganisation. The MOU is valid until November 15 of this year, provided Saab Automobile stays in reorganisation.

Press Release: Saab Automobile Update

Trollhättan, Sweden: Management of Swedish Automobile N.V. (Swan) and Saab Automobile AB (Saab Automobile) confirm that the reorganization is progressing and that a first payment by Youngman under the bridge loan funding commitment as announced on September 12 was received by Saab Automobile.

Further payments under the amended and final bridge loan agreements signed between Youngman and Saab Automobile are expected to be made during this week and by October 22 of this year. It is the intention to repay the bridge loan with the proceeds of the EUR 245 million equity investments by Youngman and Pang Da, which are still subject to approval by relevant authorities and parties which Swan expects to receive during the next weeks.

On Chinese News From Western Reporting Agencies

Ever since Saab found hope in China for a lifeline, we’ve been combing the Chinese papers for quotes, stories, and other reportable news. Unfortunately, without knowing the language well, we must rely on the limited translations and translation search engines like google that are available. This often results in less than ideal interpretations at best, and downright misleading news at worst. Sadly, over the past few days, what we’ve heard from major Western reporting agencies seems to be the latter.  Take these reports with a huge grain of salt. Not to say that they are missing translations alone, sometimes they’re just interpreting phrases or dialogue with a completely different lens devoid of context, and thus completely warping someone’s words. As an example of what comes up when we use google to translate an article from Chinese auto insider website auto.soho.com, try to crack the code and “read the tea leaves” so to speak, after the break.

DI: Swedish Government is Willing to Help *UPDATE

UPDATE: We now know the lens for which to view this story. It’s clear they’re trying to set Saab up on a route independent from current management. Read Tim’s newer post about this.

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File this under the “I’ll believe it when I see it” category, but according to DI.se, the Swedish Government is working to solve Saab’s debt situation with the EIB. That’s according to their source,  Prime Minister Fredrik Reinfeldt’s former State Secretary Ulrika Schenström, now a consultant who’s working closely Saab administrator Guy Lofalk.

Read moreDI: Swedish Government is Willing to Help *UPDATE

Thursday Snippets: Geely Wants Saab Now?

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…

Read moreThursday Snippets: Geely Wants Saab Now?

Letters of Support From Pang Da and Youngman

As part of Saab’s appeal today, Pang Da and Youngman have both submitted letters to the court explaining their belief that the deal will go through. They back it up with tables showing the process, and what levels of that process are complete. Read the letters and see those charts after the break.

Read moreLetters of Support From Pang Da and Youngman

Reports indicate Saab will build cars in Tianjin, China *UPDATE: Youngman May Make New Investment*

According to China Car Times, Saab will set up shop with partner Youngman in Tianjin, a city near Beijing. It is also the site of Great Wall Motor’s new plant, serves as a major automotive import hub, and is home to many major Chinese suppliers.

CCT mentions that they’ve heard reports that Saab sent a team of engineers to Youngman and found that their existing production lines (which a commenter mentions in the same article are elsewhere in the Guizhou to Shangdong provinces) can easily handle the additional 150,000 vehicles a year when they’re brought online. They say that the plant would be operational in 2 years at the earliest, and that they would need to import cars in the meantime. I’m sure the workers in Trollhattan would be more than happy to ramp up production to cover the difference if Pang Da is placing orders for tens of thousands of Saabs.


Read moreReports indicate Saab will build cars in Tianjin, China *UPDATE: Youngman May Make New Investment*

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