• Sweden edition
 
SAAB BANKRUPTCY BATTLE
Chinese firms in deal to buy Saab Automobile

Chinese firms in deal to buy Saab Automobile

Published: 28 Oct 2011 09:51 GMT+02:00
Updated: 28 Oct 2011 12:27 GMT+02:00

"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 100 million euros", the company said in a statement.

After the announcement, the office of Saab's court-appointed administrator, Guy Lofalk, withdrew a petition to abandon the reorganisation of the beleaguered Swedish carmaker, a step taken last week when talks with the Chinese partners to obtain €245 million ($335 million) in funding in exchange for about half the company appeared to have collapsed.

News of the deal entails major changes in the conditions governing Saab's reorganization, according to Lofalk.

“In light of the large number of jobs and their meaning for the region, as well as the large loss of value that a bankruptcy would entail, it's my assessment that these new conditions must be reviewed before a decision can be made about whether the reorganization should be halted,” wrote Lofalk in his petition.

The Vänersborg District Court in southwestern Sweden was expected to decide Friday whether to grant the petition.

The demand to end the reorganization of Saab came after its Dutch parent company Swan said the Chinese companies had failed to honour a partnership deal and provide €70 million in bridge financing while Saab underwent the restructuring process.

Swedish daily Svenska Dagbladet (SvD) reported earlier in the week that Pang Da and Youngman had instead offered a mere 200 million kronor ($30.4 million) to buy all of Saab.

After setting a price tag nearly five times higher, Saab's charismatic chief executive Victor Muller told the TT news agency Friday he was "thrilled."

"Now the company's future is really secured. The future looks very bright now," he said

"We have the deepest pockets onboard now ensuring that the company will blossom, so I'm thrilled," he added.

Swan said Friday its memorandum of understanding with the two Chinese firms was now "valid until November 15 of this year, provided Saab Automobile stays in reorganisation."

The Chinese companies will dish out the €100 million payment in installments, Swan said in its statement, adding that "an important consideration (for entering) into the transaction is the commitment of Pang Da and Youngman to provide long term funding to Saab Automobile."

With the deal, Saab will follow in the footsteps of Sweden's other large carmaker Volvo, which was bought by a Chinese company, Geely, in August 2010, for $1.5 billion.

Muller, whose company Swan -- at the time called Spyker -- bought Saab from US giant General Motors early last year for $400 million, also then rescuing it from the brink of bankruptcy, said Friday he thought the price was

right.

“It's right if you consider the company's current situation and the fact that it has not produced cars for six months," he told TT.

Production at Saab's Trollhättan factory in southwestern Sweden has been halted almost continuously since April as suppliers stopped deliveries over mountains of unpaid bills, while the company's some 3,700 employees have seen their salary payments significantly delayed for four straight months.

Following Friday's news, Swedish Automobile saw its share price soar more than 32 percent in late morning trading the Amsterdam stock exchange to €1.03 a share.

TT/AFP/The Local (news@thelocal.se)

Your comments about this article

11:40 October 28, 2011 by Eagle63
Great, so now hopefully the factory can be started up soon!

and a big middle-finger to all those who declared (or wished..) Saab dead !
14:44 October 28, 2011 by bubbagump
Yep, gonna start up that factory in Shanghai in December.
02:51 October 29, 2011 by paradisoch
bubbagump: +1
07:45 October 29, 2011 by Horace
Why must there always be negativity towards us Chinese buying out a foreign firm? It happened with Geely and the comments seem to repeat it self now with Saab. Was there also similar negativity when the Americans took over Volvo and Saab?

I work at Volvo Cars, and the general consensus now is that the Chinese owner is treating them miles better than how the Americans treated them. Yet I feel like my race gets a lot of hate.
09:13 October 30, 2011 by Migga
"Was there also similar negativity when the Americans took over Volvo and Saab?"

Yes.
16:17 October 30, 2011 by B Slick
Everyone should be happy that the Chinese are taking over SAAB because the Chinese will be able to produce a car that the public will buy, something that the Swedish people at SAAB have not been able to do for at least 25 years. So i welcome the Chinese with open arms and a firm hand shake.
Today's headlines
Royal family
Princess Madeleine to make Nobel comeback
Princess Madeleine at a previous Nobel banquet. Photo: TT

Princess Madeleine to make Nobel comeback

Sweden's Princess Madeleine is scheduled to appear at the Nobel Festival in Stockholm in December, after taking time out from her royal duties to focus on looking after her daughter. READ  

Politics
'We knew that Israel would be critical'
Foreign Minister Margot Wallström (left), with Sweden's Prime Minister Stefan Löfven. Photo: TT

'We knew that Israel would be critical'

Sweden's Foreign Minister has told The Local she respects Israel's decision to recall its ambassador after Sweden officially recognized the State of Palestine, and laughed off comments about IKEA furniture made by her Israeli counterpart. READ  

Analysis
'Store up your sunlight hours now'
Doctors say we should make the most of the autumn sunshine. Photo: Shutterstock

'Store up your sunlight hours now'

Spending time outdoors this autumn will help you survive a cold, dark Swedish winter. Baba Pendse, Head of Psychiatry at Lund University shares his top tips for battling the seasonal blues with The Local. READ  

Sports
Plot for shared Scandi Winter Olympic bid
Skiers hit the slopes in Åre, western Sweden. Photo: TT

Plot for shared Scandi Winter Olympic bid

Norwegian sports officials have said they want to co-host the winter Olympics with Sweden in 2026. But there has so far been no official response from Sweden. READ  

National
Anti-Israel graffiti 'not a race crime': Court
Photo: TT

Anti-Israel graffiti 'not a race crime': Court

A teenage boy who painted anti-Israel slogans and symbols on the Concert Hall in Gothenburg has been convicted for the damages he caused, but he walked free from racial agitation charges. READ  

Entertainment
A closer look at Sweden's rising stars
Swedish actresses Sandra Huldt and Julia Ragnarsson. Julia (right) has been nominated for a Rising Star award. Photo: TT

A closer look at Sweden's rising stars

Like to be ahead of the game when it comes to the next big thing on the silver screen? We find out more about the Swedish nominees for the Rising Star award to be presented at Stockholm's International Film Festival next week. READ  

Science
Swedish women in two-year sex pill study
Contraceptive pills have been linked to mood swings. Photo: Shutterstock

Swedish women in two-year sex pill study

Three hundred women from across Sweden are taking part in a study designed to demonstrate that modern contraceptive pills don't lead to decreased libido or mood swings. READ  

National
Stockholm 'sinking' oil spill ship safe
The ship was rescued on Thursday. Photo: Swedish Coast Guard

Stockholm 'sinking' oil spill ship safe

After fears a ship carrying around 52 tonnes of oil could sink in Stockholm's archipelago, Sweden's Coast Guard said the vessel had been towed to safety. READ  

National
Dog attack policewoman acquitted on appeal
A scene from a video of the attack published by Dagens Nyheter

Dog attack policewoman acquitted on appeal

A policewoman accused of letting her dog attack a drunk man while she repeatedly hit him with a baton, has had her conviction overturned by a court in Stockholm. READ  

Entertainment
What's On: October 31st - November 7th
Uma Thurman will soon be on her way to Stockholm. Photo: TT

What's On: October 31st - November 7th

Halloween fun and an international film festival are the big events hitting Stockholm this week. We cast our eye over the capital and the rest of the country for the best activities to check out this week. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Lifestyle
Stockholm's shocking take on Halloween
Sport
Top ten quotes from Zlatan Ibrahimovic
Business & Money
Get your own office in Gothenburg or Stockholm - free for a day
Gallery
People-watching: October 30th
National
Sweden remains fourth best for gender equality
Blog updates

31 October

Editor’s Blog, October 31st (The Local Sweden) »

"Hello readers, Welcome to our latest 60-second round-up of the week’s news. First, Sweden made headlines around the..." READ »

 

29 October

Scariest day (Blogweiser) »

"This is what’s frightening me on Halloween. http://www.youtube.com/watch?v=D4OFZVCu8J0&list=UUJu5J7jG4uoYSjWbpFsJBuQ Follow my posts on FB. ..." READ »

 
 
 
National
Timeline: Julian Assange sex allegations
Sport
World Cup ski race on 'fake' Stockholm slope
Society
An Arctic tradition: hunting and handicraft
Society
Stockholm taxis offer free therapy sessions
National
The Local meets Health Minister Gabriel Wikström
Gallery
Property of the week: Österåker
Society
Homeless turtles get Stockholm police ride
National
Construction worker has 'Sweden's best beard'
National
Italian musician jazzes up Sweden's Lapland
Gallery
Zlatan's career in pictures
Finest.se
Gallery
People-watching: October 25th and 26th
Lifestyle
'Swedes are funnier than they think'
National
Swedish town 'like Venice' after heavy rains
Lifestyle
What's On in Sweden: October 24th - 31st
Gallery
People-watching: October 22nd
Gallery
In Pictures: Prince Carl Philip and Sofia Hellqvist
Lifestyle
Eight things to love about renting a Swedish apartment
National
Vasa ship cannon blasted in Sweden
National
Sub hunt: Day-by-day
National
Sub hunt: Stockholm islanders share their fears with The Local
Sponsored Article
The best options for oversea transfers
National
Dentist gives free care to Roma beggars
Gallery
Property of the week: Malmö
Gallery
PHOTOS: 'Foreign activity' in Swedish waters
TT
Society
QUIZ: How good is your Swedish?
Society
The nudity... and nine other things expat men notice in Sweden
Gallery
People-watching: October 15th
Gallery
Your views: Should outdoor smoking be banned in Sweden?
Business & Money
Sweden has 'large hole' in finances
Sponsored Article
Introducing... Finding a job in Stockholm
Society
Monster salmon caught in northern Sweden
Gallery
Property of the week: Lorensberg
National
Scandinavia's child bride
National
Ebola crisis: How is Sweden preparing?
Business & Money
How Sweden is becoming a cashless society
Gallery
Stockholm Burlesque Festival 2014
National
How a little red horse became a symbol for Sweden
Gallery
People-watching: October 12th
Business & Money
The hottest start-ups from southern Sweden
National
Stockholm is 'best' region for well-being
Sponsored Article
How to catch the first lobster of the year
Team SCA
Sponsored Article
All-female SCA team takes off on Volvo Ocean Race
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

989
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN