Swedish Automobile (SWAN) said on Friday it had signed a memorandum of understanding (MOU) with China’s Pang Da and Youngman to sell 100% of the shares of Saab Automobile and Saab Great Britain to the Chinese companies for EUR100m (US$142m).
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 government authorities, Swan’s shareholders and “certain other parties” [likely to include General Motors, whose technology is used extensively in current Saab models, and which also builds a Saab model line in Mexico – ed].
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The EUR100m will be paid in instalments. A Saab statement said an important consideration for SWAN to enter into the transaction was the commitment of Pang Da and Youngman to provide long term funding to Saab Automobile.
“The administrator in Saab Automobile’s voluntary reorganisation, Guy Lofalk, has withdrawn his application to exit reorganisation,” said the statement. “The MOU is valid until 15 November of this year, provided Saab Automobile stays in reorganisation.”
The Vanersborg district court was due to hear Lofalk’s request for Saab to exit reorganisation today with discussions between the automaker and the Chinese taking place in Stockholm this week.
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