China’s largest car distributor Pangda Automobile Trade Co Ltd, Saab Automobile and Spyker announced that the three have signed a Memorandum of Understanding where Pangda will rescue debt-ridden Saab in a deal worth as much as 110 million euros ($155 million USD).
“Pang Da shall make a EUR 30 million payment for the purchase of Saab vehicles and is expected to make an additional EUR 15 million for the purchase of more Saab vehicles within 30 days subject to certain circumstances,” Saab said in a statement. “Additionally, Pang Da will take an equity stake in Spyker for a total amount of EUR 65 million at EUR 4.19 per share (the weighted average of the ten last trading days), representing 24 percent of Spyker on a fully diluted basis, and will have the right to nominate a member of the Supervisory Board of Spyker and /or the Board of Saab Automobile.”
“Both parties are confident that this partnership allows Saab Automobile and Pang Da to create a strong business, initially in the distribution and subsequently in the manufacturing of Saab vehicles in China,” said Victor Muller, CEO of Spyker and Saab Automobile.
Muller said that the deal with Pangda will help secure Saab’s medium-term funding needs.
– By: Omar Rana