Crisis ridden Saab secures €28 mn through property sale
28 June 2011
Crisis ridden Saab Automobile today said that it has secured €28 million ($39.7 million) by selling and leasing its properties in a move to gain additional funds to make short-term payments.
The deal comes just a day after an unnamed Chinese company placed an order to purchase 582 Saab vehicles worth €13 million with the full pre-payment expected to be made this week, providing the Swedish automaker with short-term cash to pay wages to its employees and make partial payments to its suppliers.
On 23 June, Swedish Automobile (formerly Spyker Cars) said that Saab will be unable to pay the wages to its 3,700 employees as it has not yet obtained the necessary short-term funding, raising doubts over how long the brand could continue to survive.
Due to the cash crunch, the carmaker had halted production for most of the past three months.
Saab said that it is in discussions with various parties to obtain short-term funding, including via the sale and lease-back of the real estate of Saab.
Trollhättan, Sweden-based Saab today said that it has reached an agreement for the sale of 50.1-per cent of the shares in Saab Automobile Property AB in a transaction valued at SEK 255 million (€28 million).
A consortium of Swedish real estate investors, led by Hemfosa Fastigheter, will purchase 50.1-per cent of the shares in Saab Property, which consists of 483,000 m2 building space. The investors have the right to purchase additional shares to increase the amount to SEK 300 million (€33 million) on the same terms within 30 days after closing.