Joseph Setiawan's Blog

Sharing About Automotive, Traveling, Business Opportunity & etc

Automotive – Saab turns down takeover offer from Chinese investors

leave a comment »

Saab has been fighting off bankruptcy for months

Swedish Automobile, owner of Saab, has turned down a takeover offer from China’s Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co.

Youngman and Pa Dang signed a nonbinding memorandum in July to take a combined 53.9 percent stake in Swedish Automobile for about $338 million.

Instead, the two Chinese companies made an offer for a direct purchase of shares in Saab on Friday. They say because circumstances have changed since July, so should the deal. Swedish Automobile declined the offer and asked Youngman and Pa Dang to honor the original agreement.

According to Swedish Automobile CEO Victor Muller, “The token offer was unacceptable because it would trigger every conceivable change of control clause and that would possibly mean the end of Saab.”

Muller also said there was a plan B, if the Chinese investors fell through, though he declined to reveal it.

At the same time, there is still hope for Saab. U.S. private-equity company North Street Capital promised the brand $70 million. But attorney Guy Lofalk, the administrator in charge of Saab’s case, says that amount was far from enough to continue reorganization. He asked the Swedish courts to lift the bankruptcy protection. They are set to decide on Oct. 28.

Source :
Jake Lingeman


Written by Joseph Setiawan

October 23, 2011 at 11:47 PM

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: