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.

Thursday, July 14, 2011

Pang Da confident to get permission from the Chinese government to invest in Saab

According to Dutch business news site, a top official of Pang Da said today Thursday to Dow Jones Newswires  that Pang Da Trade Co. is likely to get permission from the Chinese government to make the planned EUR 109 million investment in Swedish Automobile NV, the parent company Saab. An investment that would see the Chinese company gain a 24 percent stake in Saab.

"Saab needs a "significant" extra cash injection to remain viable in the long run," said Wang Yin, secretary of the Board of Pang Da.

"We are very optimistic about obtaining the approval of the government," Wang said in an interview with Dow Jones Newswires.

"Saab is an established European brand, and we want a large stake in the company, which we believe fits in the Chinese policy that encourages companies to invest abroad."

Beijing-based Pang Da wants together with Zhejiang Youngman Lotus Automobile Co., a Chinese car and bus manufacturer, to invest EUR 245 million in Swedish Automobile and thereby get a majority stake of 53.9 percent.

This EUR 245 million investment would secure Saab "one and a half year" of uninterrupted operations, Wang said. Pang Da was "looking for other financial partners" for the additional investment necessary.

Foreign investment by Chinese companies usually have to be approved by the Chinese Department of Commerce and the National Development and Reform Council (NDRC).

 "It is our experience that it takes at least a half year to get all permits from the government. We will obviously do our best to expedite this, but we can not control it," said Wang.