IMPORTANT NEWS: National Electric Vehicle Sweden has agreed to buy the assets of Saab Automobile and the sale is expected to be finalized during the summer.

Sunday, June 26, 2011

How Victor Muller will fund Saab in the short-term

Svenska Dagbladet sums up how Victor Muller plans to fund Saab's operations in the short-term until the China deal that will secure the long-term funding is finalized.

1. SEK 300 million in the property deal. Saab wants to sell 51 percent of the company Saab Property AB. The company is currently valued to SEK 600 million, half of this is SEK 300 million.

2. SEK 260 million from the European Investment Bank (EIB). This is part of the EIB loan that Saab was granted when Saab was sold from GM to Spyker Cars (now named Swedish Automobile). Saab requested this money already back in April this year, but for unknown reasons the EIB has not paid out the money yet.

3. SEK 300 million in advance from the Chinese partners PangDa and Youngman. The two Chinese companies plan to invest EUR 245 million in Saab, and the SEK 300 million, approx EUR 33 million, is supposed to be an advance payment.

Svenska Dagbladet also reports that China's National Development and Reform Council (NDRC), which is China's top economic planning body, is positive to Youngman since Youngman filed an application to the NDRC for approval to invest in Saab several months ago. The question is if the NDRC still will allow the deal now that Saab is a company in the brink of bankruptcy.