Saab parent Spyker and Chinese automaker Hawtai have axed the proposed investment deal between them citing problems obtaining consent from what is referred to only as “stakeholders”.
Hawtai – which had planned to inject a EUR150m (US$213m) cash lifeline into ailing Saab – needed approval both from the Chinese government and the European Investment Bank (EIB) but it appears the deal has hit regulatory buffers.
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“The transaction with Hawtai was subject to definitive transaction documentation and certain conditions, which included the consent of different stakeholders,” Spyker said in a statement on Thursday (12 May, 2011).
“Since it became clear that Hawtai was not able to obtain all the necessary consents, the parties were forced to terminate the agreement with Saab Automobile and Spyker with immediate effect. The parties will continue their discussions about a possible cooperation [but] now on a non-exclusive basis.”
Saab is not ruling out what it refers to as a “strategic partnership” with Hawtai or another Chinese party covering manufacturing, technology and distribution in China.
In its statement, Spyker referred to other “strategic” partners, with which to negotiate equity and debt, while also noting Chinese manufacturer BAIC had “indicated it does not have any problems with Saab’s ongoing discussions with other Chinese partners.”
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By GlobalDataDiscussions continue with the EIB on completion of the current EUR29m
draw-down from the EIB loan facility, on obtaining EIB consent for the sale of Saab property released under the collateral of the Swedish National Debt Office (NDO) and on various conditions proposed by the EIB.
Further details are expected later today.
