China’s Zhejiang Youngman Lotus Automobile Co and Pang Da Automobile Trade Co, two companies that have signed a non-binding memorandum of understanding to take a 53.9 percent stake in Swedish Automobile, have offered to takeover Saab completely.
Swedish Automobile said that the two Chinese companies have made an offer to directly purchase shares in Saab. The company declined the offer and asked Youngman and Pang Da to confirm that they want to fulfill the original agreement.
“That confirmation has not been received to date. Further discussions are ongoing,” it said in a statement.
“The token offer was unacceptable because it would trigger every conceivable change of control clause and that would possibly mean the end of Saab,” Swedish Automobile CEO Victor Muller said.
He said that if the two companies walked away from the original understanding, he has a plan B in place.
– By: Omar Rana
Source: Automotive News