Confirmed: Spyker the new owner of Saab
General Motors has agreed to sell its Saab brand to Dutch luxury sports car manufacturer Spyker for 400 million dollar.
Dutch luxury sports car manufacturer Spyker will be the new owner of Swedish car maker Saab as General Motors has agreed to sell its loss-making unit, Gm said in a statement.
"Today’s announcement is great news for Saab employees, dealers and suppliers, great news for millions of Saab customers and fans worldwide, and great news for GM,” said John Smith, GM vice president for corporate planning and alliances.
The price of the acquisition amounts to 400 million dollar. Spyker agreed to pay 74 million dollar in cash and 326 million dollar in preferred shares in the company that would emerge from the deal.
Sweden will guarantee a 400 million euro (563 million dollar) loan Swedish carmaker Saab requested from the European Investment Bank, Enterprise Minister Maud Olofsson said. The agreement hinges on the EIB loan.
“General Motors, Spyker Cars, and the Swedish government worked very hard and creatively for a deal that would secure a sustainable future for this unique and iconic brand, and we're all happy for the positive outcome,” Smith said.
The transaction is expected to close in mid-February. The wind down activities at Saab will be immediately suspended, pending the close of the transaction.
As part of the agreement, Spyker intends to form a new company -- Saab Spyker Automobiles -- which will carry the Saab brand forward.
Dutch financial market regulator suspended trading in Spyker shares on the Amsterdam stock exchange Tuesday "pending (a) press release" from the sportscar maker, bidding for Sweden's Saab.Trade was suspended at 1245 GMT "until further notice," the Netherlands Authority for the Financial Markets (AFM) said in a statement.
Spyker's shares gained 2.84 percent Tuesday to reach 3.91 euros at suspension, having risen more than 60 percent on Monday.
Saab has total assets, including plants, equipment and cash of about 1 billion euros , and liabilities of 528 million euros, according to Wall Street Journal.
Saab's history as an automaker dates back to the 1940s, when the first cars were produced by the Swedish aircraft maker Svenska Aeroplan Aktiebolaget or SAAB. GM acquired Saab Automobile in 1990.
“Throughout the negotiations, GM has always had the hope to find a solution for Saab that would avoid a wind down of the brand,” said Nick Reilly, president of GM Europe.
“We’ve worked with many parties over the past year, including governments and investors, and I’m very pleased that we could come to such a good conclusion, one that preserves jobs in Sweden and elsewhere.
"GM will continue to support Saab and Spyker on their way forward.”
Last Updated (Tuesday, 26 January 2010 22:10)
