Filed under: China, Government/Legal, Saab, Earnings/Financials, Spyker
Spyker is on a Chinese money hunt, and it appears the automaker may have found a partner willing to pony up the cash. Pang Da, a Chinese automobile distribution company, had recently entered into a memorandum of understanding with Spyker. Now, Spyker is set to rename itself Swedish Automobile N.V., and the Saab-owner believes Chinese authorities will give the green light for this deal to proceed.
According to Saab CEO Victor Muller, a very important portion of the deal has already gone through; a cash infusion of €30 million ($42M USD). Muller states that “Pang Da’s advance payment and sales of imported Saab cars are not subject to approval from the NDRC. The first advance payment of EUR 30 million was received last Tuesday.”
Bloomberg reports that the rest of the deal may not move forward so easily. According to analysts in China, the country’s government is unlikely to allow Pang Da’s purchase of a stake in Swedish Automobile N.V. because the nation is working to consolidate its auto industry, not expand it.
If approved, however, Pang Da will spend $91 million and receive a 23 percent share of the automaker’s business. Despite the negative view of Chinese analysts, Pang Da says it remains confident the transaction will be approved.
Continue reading Spyker to be renamed Swedish Automobile N.V. as Pang Da talks with Chinese gov’t.
Spyker to be renamed Swedish Automobile N.V. as Pang Da talks with Chinese gov’t. originally appeared on Autoblog on Mon, 23 May 2011 13:29:00 EST. Please see our terms for use of feeds.
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