Saab - is the Bank of China the White Knight?
In yet another new deal for Saab, it’s reported this morning that Victor Muller has now put together a new deal to try and save Saab from its (still) imminent desire.
It seems that Pang Da are now out of the equation, and instead there will be a three way deal between Saab, Youngman and China’s fourth biggest bank – the Bank of China.
The object of this deal is to placate GM, who still own a chunk of Saab and are able to block any sale of more than 20 per cent of the stock in Saab. GM aren’t prepared to see their technology – which still underpins Saab’s cars – fall in to the hands of a Chinese manufacturer.
The new deal is said to give Saab (Swan) 50.1 per cent of the shares, Youngman 19.9 per cent and the Bank of China 30 per cent. In this way it is hoped that GM will acquiesce and allow the sale to go through.
The plan would see the EIB loans repaid, GM giving up its shareholding (although doubtless with a caveat prohibiting future sale of the shares in Saab) and production restarting.
It is also said that Youngman are transferring funds today (Monday) to cover outstanding salaries for Saab employees.
We’ve been here before, of course, and there are still huge obstacles to this deal. The Bank of China may not be a manufacturing company – and Victor Muller may still hold the majority of the shares – but there is no guarantee that GM, the EIB, the Chinese Government or the Swedish Debt Office will sanction this deal.
Will the Saab Saga ever end?
Olof says
It’s not Bank of China, it’s a bank IN china, says Muller to Dagens Industri.
CarsUK says
That’s true, but the logic is that it’s Bank of China as they have a presence in the States, thus adding extra security for GM. But you’re right, it’s not officially been declared as BOC, although that’s the consensus of opinion.