Saab has reached a conditional agreement for the sale of 50.1% of the shares in Saab Automobile Property with a transaction value of SEK255m (US$39.3m).
A consortium of Swedish real estate investors, led by Hemfosa Fastigheter (the consortium) will purchase 50.1% reflecting an adjustment to the transaction price for a one-year lease-free period.
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The property consists of 483,000 m2 building space, with the investors having the right to purchase additional shares to increase the amount to SEK300m on the same terms within 30 days after closing.
Saab Automobile will enter into a lease agreement with Saab Property for a duration of 15 years.
As joint owners, the Consortium and Saab Automobile will seek to develop the property further including a refinancing of the property at a later date when commercially feasible.
In order to allow Saab Automobile to sell the property, the Swedish National Debt Office (NDO), being the guarantor of the EUR400m loan of the European Investment Bank (EIB), is requested to release its pledge in the shares of Saab Property.
If the NDO releases its pledge in the shares of Saab Property, the guarantee of the NDO in favour of the EIB will be reduced by EUR120m.As a result, Saab will draw up to a maximum of EUR280m under the existing EIB loan of which EUR 216.9m has currently been drawn. A further EUR 63.1 million will remain available to Saab through the EIB loan.
Saab will seek final approval from the EIB, the NDO and the Swedish government to complete the transaction which it expects shortly.
A statement from Saab noted Swedish Automobile and Saab would continue their discussions with several parties to secure additional short-term funding to restart production. There is, however, be no assurance these discussions will be successful or that additional short-term funding will be obtained, it said.
“We are very pleased with the agreement with Saab Automobile,” said Hemofosa CEO Jens Engwall. “We will continue to add value for Saab Automobile in developing the property.”
