After Saab was officially declared bankrupt, shares of Pang Da Automobile Trade Co Ltd, fell almost 8 percent.
Pang Da Wednesday said it has dropped its takeover bid for the Swedish carmaker, which filed for bankruptcy on Monday, according to its statement on the Shanghai Stock Exchange.
The company said in the statement that it would follow relevant procedures to try and retrieve the 45 million euro ($59 million) advance it had given to Saab, but warned that it may not be successful.
Saab, which made cars for 64 years, has suffered cash problems since March after 2010 sales fell short of targets amid the disruption of its sale by General Motors.
General Motors opposed to transferring technology it owns in SAAB to Chinese firms, and this led to SAAB’s filing for liquidation. The Swedish carmaker said GM refused to transfer its technology due to concerns over concerns over patent protection. However, the Chinese car makers think GM is simply trying to protect its Chinese market share.
Based in the northern Chinese province of Hebei, Pangda’s IPO was the second major deal on the yuan-denominated A-share market this year after wind turbine maker Sinovel Wind’s $1.4 billion IPO in January.