Swedish Automobile has reached an agreement with Chinese companies Pang Da and Youngman to sell off 100 per cent of Saab. Pang Da and Youngman acquired the carmaker as part of a 100 million euro deal.
Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co. have agreed to purchase 100 per cent of Saab for 100 million euro ($133 million). Swedish Automobile announced on Friday it signed a memorandum of understanding – a more formal means of a gentlemen’s agreement – on the deal, valid until November 15.
The deal will go through only if Saab stays in reorganisation. However, the administrator in charge of the Saab’s application for reoranisation, Guy Lofalk, has withdrawn from his position. Even so, Swedish Automobile is confident this deal will secure the future for Saab. The company recently said,
“An important consideration for Swan [Swedish Automobile] to enter into the transaction is the commitment of Pang Da and Youngman to provide long-term funding to Saab Automobile.”
Swedish Automobile and Pang Da and Youngman are now waiting for the deal to be approved by Chinese authorities.