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.
Short term financing has been secured through the sale of these cars to the Chinese market as well as the sale of half of their property division. These two deals allow the company to pay their workers and at least some of their suppliers and the money coming in from their partnerships with Chinese firms will help to secure mid-term financing which in turn helps them to prepare for production over the next year. It appears that with these recent deals and their Chinese partnerships, Saab has the money to make good on a majority of their current debt while having some money to put towards future production but if there is anything that we have learned from the Saab saga it is that it’s not over ‘til it’s over.
TorqueNews will continue following the Saab story, bringing you more news as it becomes available.
Other Saab News:
Sale of Saab plant to investment firm nears
Saab asks creditors to accept 10% now, 90% in September
Saab creditors seek over $3.6 million with collection agency
Saab joins forces with a second Chinese group
Spyker to become Swedish Automobile N.V.
Saab finds a new Chinese investor in Pang Da
Saab/Spyker partnership with Hawtai Motors terminated