Investors could help to ease Saab’s troubles

Chinese investors pledged to buy shares in cash-strapped Saab and signalled Russian financier Vladimir Antonov could also take a stake, suggesting the Swedish carmaker’s woes could be nearly over.
By The Newsroom
Published 5th Jul 2011, 09:53 BST

Swedish Automobile-owned Saab, whose production lines have been down for most of the last three months due to a cash crunch, got further relief yesterday as the European Investment Bank (EIB) approved a property sale that will bring in short-term funds.

Dutch-listed Swedish Automobile said the agreements with Chinese companies Pang Da and Zhejiang Youngman Lotus Automobile to buy SWAN shares for 245 million euros ($347.6m) had been finalised but were still subject to regulatory and third-party approvals.

A provisional deal was announced last month.

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The Chinese companies, which together are set to become majority shareholders in Saab, made it clear they had no issues with Antonov who is keen to become a shareholder and is seen as a vital part of long-term financing plans.

“The agreements allow for the return of Mr Vladimir Antonov as a shareholder/financier of SWAN and Saab Automobile which the parties expect as soon as the parties at interest have cleared him,” SWAN said.

Still, the Chinese deals need approval from Sweden, former owner GM, the European Investment Bank and Chinese authori- ties.

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