Swedish Automobile, owner of Saab, has been waiting for investment promises to come through from Chinese companies Pang Da and Youngman. The proposed 245-million-euro deal has just been cut off… by Saab.
In a strange turn of events it initially seems like Saab has just committed suicide, after it pulled the pin on one of its biggest investment deals which would have brought in plenty of much-needed funds. These funds would have helped pull Saab out of financial hardship, somewhat, and allowed the company to pay some of its workers and parts suppliers.
Swedish Automobile has now decided to end the deal after the Chinese companies made another offer to purchase complete shares in Saab, giving it full control over the company and its operations. However, Swedish Automobile CEO Victor Muller has rejected the offer, and now terminated the original deal. Muller also said that the Chinese companies couldn’t commit to the initial plan. The company recently announced,
“Pang Da and Youngman have presented Swan on Oct. 19 and 22 with certain conditional offers for an alternative transaction for the purchase of 100 percent of the shares in Saab Automobile, which are unacceptable to Swan.”
This comes as yet another jab to the structural integrity of Saab, after last week the court administrator in charge of Saab’s reorganisation applied to have bankruptcy protection removed. The administrator believed that Saab does not have the funds to continue a reorganisation.
So where does Saab go from now? A decision from the courts is expected on October 28.