The future of Saab seems more secure following news that a deal has been struck for two Chinese companies to buy the business.
Swedish Automobile, owner of Saab, 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.
Final agreement between the parties is subject to a definitive share purchase agreement between Swedish Automobile, Pang Da and Youngman, which will contain certain conditions including the approval of the relevant authorities, Swan’s shareholders and certain other parties.
The consideration of €100 million (£88 million) will be paid in instalments. An important consideration for Swan to enter into the transaction is the commitment of Pang Da and Youngman to provide long term funding to Saab Automobile.
The administrator in Saab Automobile’s voluntary reorganisation, Guy Lofalk, has withdrawn his application to exit reorganisation. The MOU is valid until November 15, provided Saab Automobile stays in reorganisation.