Saab Automobile-Koenigsegg Deal Financing Complete

Posted on 08. Sep, 2009 by in 2000-2009

Reuters and the Associated Press have recently received indications from the Swedish Government’s Joran Hagglund that Saab Automobile & Koenigsegg’s financial plans have been completed and as we already have recently found out, as there was no funding needed from the government to secure the deal.

This confirms what we heard earlier so now we just need to get the confirmation that everything is a go either by the end of October from all accounts I am hearing.

Here are the pieces from both Reuters and the AP, stating that the the financing is complete and that the deal will be ready by October 31st. This is good news for the first day of the new week!

STOCKHOLM, Sept 7 (Reuters) – Luxury sportscar maker Koenigsegg has presented the Swedish government with a new plan for financing its purchase of Saab Automobile [GM.UL], a government official said on Monday.

State Secretary Joran Hagglund told Reuters the plan no longer involved any extra loan from the Swedish state on top of guarantees for funding from the European Investment Bank. He declined to comment on the details of the plan.

“They have presented us with a plan … we will look at it from our side and decide how credible it is,” Hagglund said.

“As I understand it, they will present information on the matter in the coming days.”

(Reporting by Victoria Klesty)

Koenigsegg secures financing for Saab deal

STOCKHOLM

Koenigsegg Group AB has secured the extra financing needed to complete the acquisition of Saab Automobiles from General Motors Corp., the Swedish government said Monday.

Joran Hagglund, a senior official at Sweden’s Ministry of Enterprise, told Swedish Radio that the consortium headed by sports car maker Koenigsegg has presented a financing plan for the deal to the government.

Koenigsegg Group signed a deal to buy the troubled Swedish car brand from GM in August, but said about 3 billion kronor ($417 million) were missing before it could conclude the deal.

Around the same time, documents filed with the Swedish Companies Registration Office revealed that San Diego-based investor Mark Bishop had opted out of the deal. Bishop had initially been registered with a 22.2 percent ownership share in Koenigsegg Group.

Hagglund said the government is now reviewing the details of the financing plan, but didn’t reveal who was injecting the extra cash.

Saab spokesman Eric Geers said the company would present the new investor shortly and said it expects the acquisition to be completed before Oct. 31.

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No Responses to “Saab Automobile-Koenigsegg Deal Financing Complete”

  1. peter

    08. Sep, 2009

    Why is this deal not transparent ?

    Reuters report that “Chinese manufacturer SAIC is interested in taking a stake in Saab but has not decided on the size and investment,” the source told Reuters :

    http://www.reuters.com/article/mergersNews/idUSSHA11668320090908

    This was also reported yesterday by the Swedish press :

    “Sweden’s Dagens Industri business daily reported late on Monday that a Chinese car manufacturer would be going in on the Saab deal with Koenigsegg as part owner. It quoted an unnamed source as saying that the unnamed investor had helped cover what is understood to be a 3 billion Swedish crown ($420 million) gap in financing for the purchase.”

    And who are the real owners of the other players ?

    Peter

    Reply to this comment
  2. peter

    08. Sep, 2009

    More ………..

    http://blogs.reuters.com/commentaries/2009/09/08/how-swedish-is-saab-now

    What is clear is that Koenigsegg is just a name designed to appeal to Swedes and help in the raising of funds.

    The bulk of the money is coming from elsewhere, and no concrete future proposals have been made.

    What isgoing on ?

    Peter

    peter

    Reply to this comment
  3. peter

    09. Sep, 2009

    Koenigsegg Group made an announcement at 12:15 today
    Today Koenigsegg Group announced that they have entered into a Memorandum of Understanding with Beijing Automotive Industry Holdings Co. Ltd. (BAIC), the aim of which is that BAIC will acquire a non-controlling minority stake in Koenigsegg Group. Importantly this partnership means that Koenigsegg Group does not need any further governmental financing and it opens up further opportunities for the new Saab in the Chinese market.
    Jan Åke Jonsson, Managing Director of Saab Automobile said: “This is really good news for Saab. It brings us one step closer to creating a stand alone company, and a relationship with BAIC opens up a lot of opportunities for Saab in China, one of the most expansive markets in the world”

    Reply to this comment
  4. Robin O;Connor

    09. Sep, 2009

    I get the horrible feeling that the Koenigsegg Group are already looking for an exit strategery, it had become obvious that they were Saab and the Swedish governments prefered choice, did they not want to be seen selling it to a Chinese company for political reasons, just how good is the involvement of BAIC?

    Reply to this comment

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