China's Pang Da Automobile bails out Saab in a 110-mn deal news
16 May 2011

Dutch luxury carmaker Spyker today said that it had secured medium-term funding requirements for its Swedish car Saab from China's Pang Da Automobile Trade Co Ltd.

The deal comes a week after a financing deal with China's Hawtai Motor Group fell through and brought the Swedish auto-maker to a near financial collapse and closure of the company, which Spyker had acquired early this year from General Motors for $500 million. (See: Spyker bags GM's Saab brand for $500 million) 

Spyker has signed a memorandum of understanding (MoU) with Pang Da that includes a manufacturing joint venture (MJV) and the distribution of Saab-branded vehicles in China.

Saab will have up to 50 per cent in the MJV, with Pang Da and a to-be-selected manufacturing partner owning the remaining shares.

Pang Da will buy Saab vehicles worth 30 million pay an additional 15 million for the purchase of more Saab vehicles within 30 days subject to certain circumstances.

Additionally, Pang Da will acquire a 24-per cent stake in Spyker for 65 million at 19 per share and will have the right to nominate a member on Spyker and /or Saab Automobile.

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China's Pang Da Automobile bails out Saab in a 110-mn deal