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.

Wednesday, June 8, 2011

Sale of Saab's property within shortly?

It is no secret that Saab has had a tight financial position for several months now. Even though Saab has raised almost EUR 80 million through loans, issuing new shares and up front payments for cars to be delivered to China this fall, the liquidity still is tight. Now Swedish Radio reports that more money can be on the way.

According to Swedish Radio it is the previously much commented property sale that is again relevant. But now with a different buyer than the Russian banker and Saab enthusiast Vladimir Antonov. Already 20 May it was reported on this blog that Saab had hired the commercial real estate advisor DTZ to find a new buyer for the property.

A property sale would mean that Saab sells its buildings, land and facilities to another company not linked to Saab and then enters into a lease back agreement so that Saab will have full access to the buildings and facilities. This could raise up to SEK 1 billion, that's around EUR 110 million. An amount that would secure Saab's operations in the mid-term.

Update: The value of the property and the amount of money a sale can raise is unknown. SEK 1 billion has been mentioned earlier, as has SEK 900 million, but also as low as SEK 270 million.