Tag Archives: Sweden’s Ministry of Enterprise

Saab Automobile-Koenigsegg Deal Financing Complete

Posted on 08. Sep, 2009 by .

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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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