May 16 – Spyker Cars NV, owner of Swedish car-maker Saab, recently announced that it has signed a tentative deal with China’s Pangda Automobile Trade Co., Ltd, which will provide sufficient funds for Saab’s medium-term development.
According to the two parties’ agreement, Pangda, the company that has just raised nearly US$1 billion in its initial public offering last month, will purchase Saab vehicles with a total value of EUR45 million (US$63.6 million), and take 24 percent of Spyker’s equity stake for EUR65 million (US$91.8 million). The two firms will also establish a joint venture – with both parties holding 50 percent of shares – for the distribution and manufacturing of Saab cars in the Chinese market. The new deal is hoped to help Saab, whose auto production was stopped in Sweden last month due to fund deficiency, steer clear of its financial problems. Continue reading