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Friday, 28 October 2011 16:49

SAAB to be sold to Chinese firms

Chinese firms Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co. have agreed to buy Saab for 100 million euros ($142 million), according to reports in Automotive News.

Saab owner, Swedish Automobile, said on Oct. 28 that it has entered into a memorandum of understanding to sell 100 percent of the shares of Saab to the Chinese companies. The memorandum of understanding is valid until November 15, provided Saab stays in reorganization. Swedish Automobile said Saab's administrator, Guy Lofalk, has withdrawn his application to a Swedish court for Saab to exit reorganization. The court had been due later the same day to decide on Lofalk's application.

Swedish Automobile said an important part of the deal "is the commitment of Pang Da and Youngman to provide long term funding to Saab Automobile."

Pang Da and Youngman will provide sufficient financing so that a court-backed reconstruction process under creditor protection can continue, a court document showed.

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