Breaking: Saab sells plant to investment group
The investment consortium is led by Hemfosa Fastigheter and over the past week or so, Hemfosa was the key company expected to pull the trigger on the purchase of the Trollhattan plant. This investment group paid 255 million Krona (about $40 million USD) for 50.1% of the Property division which entitles them to a controlling share of the production facility and in exchange for a friendly purchase rate, Saab will get a full year of use of the facility without any lease payments. Also, the investment group has the right to purchase another 45 million Krona worth of the Saab Property division within 30 days after making the initial purchase. Based on the purchase price of the first 50.1%, an addition 45 million Krona investment would bring the consortium roughly 9% more ownership of the Saab property division based on the initial agreement but that amount could vary depending on a quite a few things – including input by the Chinese investors and the European Investment Bank (EIB).
This 255 million Krona inflow of cash should allow Saab to pay enough of their suppliers to be able to resume production at the Trollhattan facility. On top of having cash flow to pay suppliers, the company will save on lease payments over the next year and when you consider the fact that the recent sale of over 580 Saab vehicles to an unnamed Chinese firm allowed the automaker to sell their previous unpaid union auto workers, it looks like things could finally be looking up for the troubled Swedish automaker. After the sale of 50.1% has closed, Saab Automobile will sign a lease agreement for 15 years with the Saab Property division.