Saab in $351 milion deal with Youngman, Pang Da
Monday, June 13, 2011
STOCKHOLM (AP) — Saab Automobile AB says it has signed a nonbinding agreement with two Chinese companies, which will inject a total of (euro) 245 million ($351 million) into Saab-owner Spyker Cars NV.
Saab on Monday said Zhejiang Youngman Lotus Automobile Co. will invest (euro) 136 million for a 29.9 percent stake in Spyker to participate in joint ventures to make and distribute Saab-branded cars in China.
Saab’s previously announced sales partner Pang Da Automobile Trade Co. will increase its investment in Spyker to (euro) 109 million from (euro) 65 million to retain its 24 percent stake in the company.
Spyker has been struggling to find cash for Saab, which was forced to stop production for seven weeks in April. Pang Da agreed to invest in Spyker in May, but last week production stopped again.