Saab is still clinging onto its last threads as it announces a share issue in a bid to help pull itself out of bankruptcy and pay a number of unpaid employees.
Swedish Automoible, the owner of Saab, says GEM Global Yield Fund Ltd. will purchase around five million shares in the company, which will see Saab hand over a 17 per cent stake. This is expected to raise around 6.9 million euro ($9.2 million) for the Chinese-owned Swedish company.
According to reports, the announcement of more shares on the market isn’t really going to give Saab the time it needs. Analyst at Theodoor Gilissen, Tom Muller, said in a recent Automotive News report the share offer isn’t likely to help Saab’s situation all that much.
“Let’s assume they get around 6.5 million euros from this sale looking at where the share price is. They need at least 50 million euros [$66.9 million] to pay suppliers and get things started again. They have much more to do.”
Last week, Saab announced it could not pay a number of its white-collar workers due to a lack of commitment from would-be investors and a lack of funds due to demands to pay parts suppliers. Yesterday, the company announced it expected to be able to pay its workers sometime this week. Swedish Automobile also announced in a recent statement,
“Swedish Automobile and Saab Automobile continue their discussions with parties to obtain further short-term funding to be able to restart and sustain production.”
We’ll continue to keep you updated until hopefully, Saab is finally secured for the future. Feel free to give us your thoughts in the comments section below.