Published on 25 Oct 2011 by Adriano
Dutch company Swedish Automobile, owner of Saab, has abruptly ended the partnership agreement with China’s Pang Da and Youngman groups adducing a breach of contract from the Chinese side as the reason for the break-up. The decision is a big blow to Saab’s struggle for existence, which was strictly dependent on the success of this partnership, signed last July. Initially Youngman and Pang Da were supposed to acquire a combined 53.9 % stake in Swedish Automobile for 245 million Euros, the money required to keep Saab in the business, but then the Chinese companies said circumstances have changed and now they want to purchase shares in Saab itself, in the view of a possible a takeover of the historic Swedish automaker.
Swedish Automobile CEO Victor Muller described the offer as “unacceptable” as it would activate a change of control clause that would possibly mean the end of Saab. Swedish Automobile has struggled for months seeking investors and selling off various assets in a bid to keep their Saab plant in Sweden alive, but the failure of this agreement has really put the future of the brand in jeopardy: the attorney in charge of Saab’s reorganization has just asked a Swedish court to end bankruptcy protection for the automaker, saying Saab does not have enough money to continue the process. A decision on this application will be taken on Oct. 28. However, in spite of all that, talks between Swedish Automobile and the aforementioned Chinese groups are still ongoing.
via | AutoMotiveNews