The Saab saga rages on

The trials and tribulations of Saab continued this week - and it’s not hard to imagine the execs in Sweden wondering what might have been had the brand never been sold to General Motors.

It seems that the expected Chinese takeover of Saab is a done deal after parent company Swedish Automobile (which is actually based in the Netherlands) announced that it has entered into a memorandum of understanding with Pang Da and Youngman for the sale and purchase of 100% of the shares of Saab Automobile and Saab Great Britain Ltd for a consideration of €100 million, which is to be paid in instalments.

A definitive share purchase agreement between Swedish Automobile, Pang Da and Youngman has not yet been determined, however, and this is expected to contain certain conditions including the approval of relevant authorities, Swedish Automobile’s shareholders and other concerned parties. It is still uncertain as to the commitment of Pang Da and Youngman to provide long-term funding to Swedish Automobile.

But this is by no means the end of the story - the memorandum of understanding is valid until November 15, provided Saab Automobile stays in reorganisation. Stay tuned as we closely monitor Saab’s survival.

www.saab.com


By Georgia Lewis

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