Tag Archives: Beijing Automotive Industry Holdings

Dagens Industri Reports Saab May Not Get Full EIB Loan

Posted on 30. Sep, 2009 by .

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Swedish Newspaper, Dagens Industi reports that Saab may not get the full EIB loan as syndicated on Reuters today.

There are conditions apparently that may not exactly fit the loan lending rules, but this is from an unnamed source, so take this news lightly until we hear otherwise from official channels.

Saab may not get full EIB loan – paper
Tue Sep 29, 2009 5:16pm EDT

* $612 mln loan is key to Koenigsegg acquisition plans

* Questions whether some projects fit EIB lending rules

* Concerns remain over Koenigsegg’s ability to buy Saab

STOCKHOLM, Sept 29 (Reuters) – Ailing Swedish car firm Saab, being sold by General Motors [GM.UL], may not get the full 4.3 billion Swedish crown ($612 million) loan it has asked for from the European Investment Bank (EIB), daily Dagens Industri wrote on Tuesday, quoting an unnamed source.

The loan is key to plans by luxury car maker Koenigsegg to buy Saab, but the EIB is doubtful whether some of the group’s projects to develop environmentally friendly technology are within its remit for lending.

The EIB could lend Saab much less than the car maker wants, the paper wrote.

“There are questions about whether a number of development projects fit with the EIB’s rules for lending,” the paper quoted a source with insight into the process saying.

Koenigsegg, backed by U.S. and Norwegian investors, struck a preliminary acquisition deal earlier this year, but concerns have continued to surface over whether it had the financial muscle to buy and run Saab.

Koenigsegg is in talks with Sweden to secure state guarantees for the EIB loans.

But Dagens Industri said that questions had also been raised regarding the value of collateral that would be placed with Sweden’s Debt Office to secure a guarantee from the
government.

“There is a discussion as to whether Saab’s assets shouldn’t be valued at their worth in the event of insolvency rather at market value,” the source said.

“In that case, the collateral would not be enough security for a loan of 4.3 billion crowns.”

Koenigsegg Chief Executive and part owner Christian von Koenigsegg told Reuters on Saturday there was good progress in talks to secure the guarantees and the group aimed to finalise Saab’s acquisition by the end of October. [ID:nLQ720794]

He played down a report that Koenigsegg could pull out of the deal unless there was progress on securing loans by Wednesday.

This month, Koenigsegg said state-run Beijing Automotive Industry Holdings would take a minority stake in the luxury carmaker as part of its planned purchase, easing funding
worries.

Swedish state secretary Joran Hagglund told Reuters on Tuesday he hoped the EIB would decide on the loan on Oct. 21 or the day after.

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Christian Von Koenigsegg Interviewed About Rumors

Posted on 29. Sep, 2009 by .

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Photo Credit: Saab History

Christian Von Koenigsegg
, CEO of Koenigsegg Group, denies rumors of trouble in the investor group that plans on taking over Saab Automobile from GM.

Here is a report from e24 & SVD, posted today about his interview with them.

Koenigsegg Group CEO Christian von Koenigsegg denies rumor of trouble in the investor group to take over Saab Automobile from GM. But the protracted affair is starting to weigh CEO: “It is a great sacrifice of time, money, resources and brand,” he told and SvD reporter.

It is evident that the enthusiastic entrepreneurs behind Koenigsegg Group no longer manage to keep the positive noises upstairs. This weekend went Norwegian businessman and owner of the Koenigsegg Group, Bard Eker, out of the Norwegian media and talked about an ongoing ownership split in the group who would threaten the whole affair.

But according to Christian von Koenigsegg, who talked with BÃ¥rd Eker, said he was misquoted in the newspapers.

– Any fraction of ownership, we have certainly not within the Koenigsegg Group.

Bard Eker said that “if everything is in place on Wednesday, we are out.” But was it he or the newspapers who said it was on Wednesday as the end date? We do not know from what we heard from Christian von Koenigsegg.

– What we’ve noticed with this deal is that it is very media intense and arouses great interest. We can not go out and talk about the details on a daily basis. We need to focus on our business, “he says and believes that it leaves room for speculation and misunderstanding,” he says.

There are still a number of parallel processes running. Among other things, is it important loan of just over 4 billion grant from the European Investment Bank, EIB, in about three weeks. First, however the Swedish Government must provide a loan guarantee to the EIB.

– Both the Bank and the Debt Office may always have information from us and Saab what happens and we respond to their questions when they request more information.

Although there are many milestones left you can see them in the Koenigsegg Group as more formal today. Christian von Koenigsegg stresses that all parties involved have the same goal to bring together the deal to the end of October or early November.

He, who previously failed so hopeful and positive, but sounds more embarrassed today but did not evaluate the Koenigsegg Group will pull out.

– I would not say. But since it is so here that the conditions have to be sufficiently interesting for us to want to do the deal. It is a great sacrifice of time, money, resources and brand, “he says, but points out that they still have come a long way in the affair, and that conditions are” reasonable “.

Have conditions changed lately?

– I would not say either, but it is a negotiation between different parties and everyone will agree. It is a process that requires many resources, he says, adding that they are on the track.

The loans that Saab needs EIB is mainly intended for new environmental technology. Without going into details about the environmental technology company will develop, “says Christian von Koenigsegg that environmental engineering is an important part of the business group has presented and for the evaluation of EIB.

Koenigsegg Group has signed a letter of intent with Beijing Automotive Industry Holdings, BAIC, with the plan that they will go in as a minority owner of the Koenigsegg Group to cover up the missing part of the capital need. But how much BAIC will take is still unclear.

– We have not gone out with a precise percentage. It is important to note that they are minority shareholders. They can not control in any way the Koenigsegg Group, but they are a partner with us, “said Christian von Koenigsegg that either do not want to respond to the BAIC has covered up the 3 billion according to estimates previously missing.

– The 3 billion missing does not come from us. We said we saw an opening in the business plan which was around 30 percent and we saw the need for multiple parties to resolve it. And the parties were GM, Koenigsegg Group and the government – but the government declined, and then we found its third partner in the BAIC.

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