GM and Koenigsegg have announced that a deal has been finalized between the two over the sale of Saab. The deal involves a 100 percent sale of Saab to Koenigsegg by the end of the year. The final piece of the deal involves funding from the European Investment Bank in the amount of 4.3 billion kronor, which is dependent on the Swedish government.
The exact price that Koenigsegg is paying for Saab has not been disclosed, but according to sources it is very low.
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PRESS RELEASE:
General Motors and Koenigsegg Group Sign Stock Purchase Agreement for the Sale of Saab Automobile AB
* The deal is expected to close by year's end and will secure Saab's future
* The closing will be subject to funding agreements and other closing conditions
* Saab Automobile plans to exit reorganization shortly
Zurich. General Motors Co. today confirmed it has signed a stock purchase agreement with Koenigsegg Group AB regarding the sale of 100% of the shares of Saab Automobile AB. The deal is expected to conclude in the next months and will then secure Saab's future. Saab Automobile plans to exit legal reorganization shortly.
The stock purchase agreement will be subject to agreed closing conditions. Conditions to close the sale include expected funding commitments with Swedish government support and guarantees, as well as transitional assistance from GM, as Saab becomes independent. Saab is about to launch several new cars, developed with General Motors, that are in the final stages of development.
As part of the proposed transaction, GM and Saab will continue to share technology and services during a defined time period. This will be managed through licenses and service agreements.
"This contract is an important step in the journey to a potential deal, said Carl-Peter Forster, president of GM Europe. "Saab's great cars, its unique design, safety- and engine-technology, as well as its excellent brand image, combined with Koenigsegg Group's unique combination of innovation and entrepreneurial spirit, bode well for a successful future for the brand. We will continue to work with all parties to define the final details and ensure a fast closure of the deal, which we expect to take place in the next few months. The closure of the deal is contingent on the funding commitment from the European Investment Bank (EIB), guaranteed by the Swedish government," Forster added.
"We have now concluded another important step in realizing the great potential of Saab," said Christian von Koenigsegg, CEO of Koenigsegg Group. "Our plan is to transform Saab into a stand-alone vibrant entrepreneurial company and make it 'sustainable' by making it profitable. We will revive Saab's Swedish heritage of ecological sensitivity, safety, design innovation and 'fun to drive' experience!"
Jan Åke Jonssson, Managing Director of Saab, said: "This is excellent news for everyone connected to Saab around the globe. This is an important step to secure jobs and our long-term future as a Swedish carmaker. In the short-term, it will enable us to move forward with exciting new cars starting this month with the all new Saab 9-3X."
Comments (5)
"The exact price that Koenigsegg is paying for Saab has not been disclosed, but according to sources it is very low."
I guess so considering GM owns all the intellectual property minus Haldex AWD and platforms that Saab is currently using. Pretty much the only thing they are buying are the names. GM is also going to be supplying the vehicles (platforms, power trains, etc) for a while. Just like the Hummer and Saturn deals.
Posted by Avatar | August 18, 2009 8:48 PM
Posted on August 18, 2009 20:48
In other business articles they've commented that some technology transfer was included in this deal. The "low" price has also been rumored to be around zero, but Saab debt will be staying with Saab....that's what the financing is for.
Posted by thetruth | August 18, 2009 10:17 PM
Posted on August 18, 2009 22:17
Saab doesn't have that much debt. GM held 90% of Saab's debt, but agreed to write-off 75% of it. Likewise, GM is actually loaning Koenigsegg about $500 million for the deal with the rest coming from the Swedish government and Koenigsegg aka private banks.
Though the Swedish government is now telling Koenigsegg they need to raise more money. They have only secured about 70% of the funds needed. Unless they can come up with more money, the deal won't happen. That combined with the above throws the, "The "low" price has also been rumored to be around zero" out the window.
Posted by Avatar | August 19, 2009 6:37 AM
Posted on August 19, 2009 06:37
The loan is probably the best move GM ever made with Saab, they'll actually make some money that way.
GM agreed to that write down awhile ago, but I think Saab still owes something like $300 million to them...not exactly chump change. I'm not familiar with the loan GM is making, I know that between Koen and them they contributed a similar amount in capital, but I had considered it part of the tech. sharing that hasn't been fully disclosed. I wouldn't call it an investment in intangibles, but there's still some good stuff to come out of Saab GM will also be supplying many components for future Saabs, so I'm sure there's something of a purchase commitment involved, and GM will obviously make profit on that as well (or still lose money, who knows).
From an engineering perspective, I'm sure Koen can contribute to Saab, but this is obviously more a venture by the group. They're going to move production back to Sweden (this plan was part of the commitment to get Swedish backing) and try to compete...it's going to be difficult as that's just not a low cost manufacuring region.
Posted by thetruth | August 19, 2009 8:41 AM
Posted on August 19, 2009 08:41
I offered $10.00 for the company, but they said my offer was too generous and knocked me back....wtf ???
Posted by Peanut | August 19, 2009 3:00 PM
Posted on August 19, 2009 15:00