Not too long ago, Swedish Automobile N.V. and Saab announced that their purposed partnership with Chinese companies Pang Da and Youngman, which was made earlier in the year, would be terminated. The original plan was for a Subscription Agreement that would allow a select number of Saab shares to be purchased, subsequently giving the swedish car maker proper funding to restart production. Instead of transpiring, Saab lost confidence in the original plan and ended it. Pang Da and Youngman came back with another offer: this time to buy 100 percent of the Saab Automobile and Saab Great Britain shares. At first, Swedish Automobile N.V. denied the offer but now things appear to be a bit different.
Now in place is a memorandum of understanding (MoU) between all parties for the 100 percent sale. The final agreements have yet to be set, as conditional approval must be given by the relevant authorities. The sale would give Saab 100 million euros which would be paid in installments. Even so, Swedish Automobile N.V. might not hold full confidence in the two Chinese companies. According to their recent press release, “An important consideration for Swan to enter into the transaction is the commitment of Pang Da and Youngman to provide long term funding to Saab Automobile.” There is still time for more events to take place as the MoU will be in place until November 15.
Source: Saab
