Bank of China, China’s fourth largest bank will gain part ownership of the Swedish car maker, according to a source familiar with the deal, Reuters reports.
Under the new deal, the bank will replace Chinese investor Pang Da Automobile Trade Co. Youngman and the bank will own just fewer than 50 percent of the auto company.
The object of this deal is to placate GM, who still own a chunk of Saab and are able to block any sale of more than 20 per cent of the stock in Saab. It said in November it would stop supplying components and technology if Youngman and Pang Da succeeded with their acquisition bid.
Pang Da originally signed with Saab to buy their produce for the Chinese market, later they tied with Youngman to buy the Swedish company outright but the months of fun and games has left Pang Da seemingly tired of the process so far.
Last week, Swedish Automobile, the Dutch owner of Sweden-based automaker Saab Automobile AB, announced a third-quarter net loss of €142.7 million and said it expects a „substantial net loss” for the full year.
Only 130 cars were produced this year between July 1 and September 30 and 1,235 cars were sold, a steep decline of 86 percent compared with the same period last year.
General Motors, sold Saab Automobile to Swedish Auto early 2010 at the price of $ 400 million, received $ 74 million in cash, and offered preferred stock to offset the balance.