Saab sold to Spyker but GM retains part ownership

[AdamzXRUte]

Saab sold to Spyker but GM retains part ownership
27 January 2010
By MARTON PETTENDY
GENERAL Motors has, as expected, sold its Swedish brand Saab to Dutch supercar maker Spyker.

As part of the deal, which GM says is subject to customary closing conditions, including receipt of applicable regulatory, governmental and court approvals, Spyker intends to form a new company, Saab Spyker Automobiles.

No financial details have been revealed as part of the transaction, which comes within 24 hours of GM announcing it would continue to wind down the troubled Scandinavian marque.

According to Autocar, the $US400 million ($A445m) deal will see Spyker give parent company GM $US74m ($A82m) for Saab, with $US50 million ($A56m) to be paid on completion of the deal and the remaining $24 million ($A27m) on June 15, 2010.


Spyker also confirmed it has extended a $150 million ($A167m) credit line, plus taken additional loans to fund the deal, in which Spyker must also negotiate the acquisition of all the outstanding shares in Saab Great Britain Limited, the UK distribution, marketing and sales company for Saab from General Motors UK Limited.

GM will retain $326 million ($A363m) of shares in Saab, entitling it to minimal voting power in the company but allowing it to share in potential future profits.

That news followed the withdrawal on Monday night of the only other bidder, investment company Genii Capital, backed by Formula One powerbroker Bernie Ecclestone.

It led to the suspension of trading in Spyker Cars shares by Dutch authorities after speculators drove up its share price.

GM, whose Mexican factory has commenced production of the Saab 9-4X, today confirmed the binding agreement between Spyker Cars NV and Saab Automobile AB.

“Today’s announcement is great news for Saab employees, dealers and suppliers, great news for millions of Saab customers and fans worldwide, and great news for GM,” said John Smith, GM vice-president for corporate planning and alliances.

“General Motors, Spyker Cars and the Swedish government worked very hard and creatively for a deal that would secure a sustainable future for this unique and iconic brand, and we're all happy for the positive outcome,” said Mr Smith.

GM said the Swedish government currently reviewing the transaction and the related request for guarantees of a 400 million Euro ($A626m) Saab Automobile loan that has been requested from the European Investment Bank.

It said the transaction is expected to close in mid-February, with GM’s previously announced wind down activities “immediately suspended, pending the close of the transaction”.

“Throughout the negotiations, GM has always had the hope to find a solution for Saab that would avoid a wind down of the brand,” said GM Europe president Nick Reilly.

“We’ve worked with many parties over the past year, including governments and investors, and I’m very pleased that we could come to such a good conclusion, one that preserves jobs in Sweden and elsewhere. GM will continue to support Saab and Spyker on their way forward.”

Spyker chief Victor Muller said: “We are very much looking forward to being part of the next chapter in Saab's history. The next task is for Saab to become profitable in its own right, and that's not an easy task. But it is one that I think can be achieved.”

It is believed the new Saab 9-5 and Saab 9-3 range will be built at Saab's Trollhättan HQ, which was extensively restructured to help make the company profitable with sales of less than 100,000 vehicles per annum, under Spyker control.

As part of the deal, Saab managing director Jan Ake Jonsson will return to his post immediately, while Spyker chairman, Russian banker Vladimir Antonov, has sold his shares to an equity firm owned by Spyker CEO Victor Muller – an arrangement demanded by GM, who feared its intellectual property could be fed into the Russian car industry.

Swedish supercar maker Koenigsegg had pulled out of a deal to buy Saab in November.



I don't know why GM insist on having anything to do with this mob, when was the last time they made a profit?

[PaulST]

Great news!

[ELSpeedo]

The Dutch have money so does GM. Things are not so bad.
Hopefully the new SAAB will be worthy of the name..

[FG40]

I hope they make a good go of it.



440 odd mill i doubt that would last GM Very long at all.

[ernysp76]

Something interesting here with Dutch investment in a Swedish firm's bailout, it was a Swedish firm that bailed out a Dutch car maker in the 70's that was Volvo buying out Daff and getting the rights to build and licence the famous CVT's that are now popping up everywhere.