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 7, 2011

Sweden approves property sale, but production won't restart before August

Updated with Saab confirmation and press release

TTELA reports that Sweden's Minister for Enterprise has confirmed in a radio interview this morning that the Goverment will approve Saab's sale of 50.1 percent of the shares in the Saab property company that owns among other things the Saab Trollhattan manufacturing plant.

This means that Saab and the consortium of buyers, with Hemfose Fastigheter in the lead, can finalize the deal and Saab will get SEK 255 fresh millions.

Another important step towards restarting production has been reached!

Update: Saab has now issued a press release confirming that all relevant stakeholders have approved the sale and lease back deal concerning Saab property. In the press release it is also said that the goal now is to resume production in Trollhättan by 9 August.

Below is the press release:

Saab Automobile Update On Production And Sale And Lease Back Of Saab Property

Trollhättan, Sweden: Swedish Automobile N.V. (SWAN) announces that Saab Automobile AB (Saab Automobile) obtained final approval from the EIB, the NDO and the Swedish government for the sale and lease back of the Saab property.

The consortium of Swedish real estate investors led by Hemfosa Fastigheter, and including among others, Brinova Fastigheter AB, PEAB and Weland Fastigheter will purchase 50.1% of the shares in Saab Property AB for a total consideration of SEK 255 million, reflecting an adjustment to the transaction price for a one year lease free period. Of the SEK 255 million consideration, SEK 205 million will be paid in cash on closing and the remaining SEK 50 million in the form of a sellable bond convertible into shares of the purchasing company. The investors have the right to increase their commitment to SEK 300 million within 30 days after closing on similar terms. The parties will proceed to closing the transaction today.

With this transaction SWAN and Saab Automobile will have raised about EUR 61 million in additional funding commitments over the past weeks. Saab Automobile continues its discussions with its suppliers on materials supply and commercial terms and is close to reaching agreements. SWAN and Saab Automobile continue their discussions with several parties to obtain further short-term funding to be able to restart and sustain production, including completion of a drawdown under the EIB loan facility.

Given the fact that some of Saab Automobile's suppliers require a longer lead time to resume adequate supplies and the delay as a result of the summer shutdown period at many of Saab Automobile's European suppliers, Saab Automobile plans to restart production by Tuesday August 9, provided that the above criteria are met.