Saab Automobile announced on June 13th that it had signed a deal with Zhejiang Youngman Lotus Automobile Company. This follows on from another partnership between Saab and Pang Da Automobile Trade Co. The Lotus agreement will see the former acquire a 29.9 percent stake in Spyker (Saab’s parent) for a total investment of $195 million US. Combined with the Pang Da deal, that amounts to a cash injection of some $351 million U.S.
Spyker has been struggling to raise capital for Saab and was forced to stop production back in April due to cash flow and supplier concerns. Now with the extra funding, the future looks significantly brighter. Upon news of the deal, Spyker CEO Victor Muller said that it “significantly strengthens Saab’s financial position and secures the mid and long-term financing of Saab Automobile. Both Pang Da and Youngman have demonstrated a similar entrepreneurial mindset as we have, which we feel will be instrumental to establish Saab’s presence in China.”
Spyker shares rose 29 percent on the Amsterdam Stock Exchange, following the announcement.
