After months and months of difficulties, Swedish Automobile N.V. (Swan) has sold Saab Automobile AB and Saab Great Britain Ltd. to China’s Pang Da and Youngman for a consideration of EUR100m (US$142m).
The $142 million (€100 million) payment will be made in installments, the company said.
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 authorities, Swan’s shareholders and certain other parties, the company said in a statement.
In addition, according to the agreement, Pang Da and Youngman will delay the financing needed for the reorganization as well as the financing included in the original plan whereby the Chinese firms agreed to provide Saab with a much-needed cash injection.
The MOU is valid until November 15 of this year, provided Saab Automobile stays in reorganization.
The announcement comes a week after Guy Lofalk, who was appointed by the Vänersborg district court in southwestern Sweden to oversee Saab’s three-month restructuring process under bankruptcy protection has applied for termination of the voluntary reorganization of Saab.
Swedish Automobile CEO Victor Muller hailed the deal which he said secured Saab’s future.
“I feel very happy about it,” he told the TT news agency.
“The future looks really bright now. We have the deep pockets onboard now which ensure that the company will flourish, so I’m very happy about this.”