Little-known Chinese automaker Hawtai Motor Group has come to the rescue of Saab, only a year after tiny Dutch supercar maker Spyker bailed out the Swedish marque. Spyker Cars says it has secured $223 million ((EURO)150 million) in funds for troubled Saab Automobile through this deal.
News of the partnership came just hours after Saab had secured short-term funding through a 30-million-euro ($44.4 million) convertible loan agreement with Gemini Investment Fund Ltd. The car maker hopes to restart production within a week.
As a part of the transaction Hawtai will invest EUR 120 million for up to a maximum of a 29.9 percent equity stake in Spyker on a fully diluted basis. The remaining EUR 30 million will be in the form of a convertible loan agreement in the amount of EUR 30 million with a 6 month maturity, an interest rate of 7% per annum and a conversion price of EUR 4.88 per share.
The transactions are subject to agreement on definitive transaction documents and certain conditions, which include consents from certain Chinese governmental agencies, the European Investment Bank and the Swedish National Debt Office. As part of the transaction, Tenaci Capital will convert EUR 42 million of its current loan to Spyker into share capital in Spyker at EUR 4.88 per share, thereby substantially reducing Spykers interest burden.
Spyker bought Saab from General Motors in January 2010, but has been struggling to find funding to keep the embattled Swedish car manufacturer running.
Saab was forced to halt production at the beginning of April due to a dispute over unpaid bills.