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

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.