Spyker Cars N.V. and its Saab Automobile story has taken another turn after announcing it has signed a memorandum of understanding with Pang Da Automobile Trade Co., Ltd.
Pang Da, China’s largest publicly traded automobile distributor with over 1,100 dealerships nationwide, has been brought to the table after talks between Spyker and Hawtai Motor Group Company Limited collapsed late last week.
According to Spyker, The new MoU includes a strategic alliance consisting of a 50/50 distribution joint venture and a manufacturing joint venture (MJV) for Saab branded vehicles as well as for an MJV-owned brand (the so-called 'child brand') in China.
Saab would have up to 50 per cent in the MJV, with Pang Da and a to-be-selected manufacturing partner owning the remaining shares.
Pang Da shall make a EUR 30 million payment for the purchase of Saab vehicles and is expected to make an additional EUR 15 million for the purchase of more Saab vehicles within 30 days subject to certain circumstances.
Additionally, Pang Da would take an equity stake in Spyker for a total amount of EUR 65 million at EUR 4.19 per share (the weighted average of the ten last trading days), representing 24 percent of Spyker on a fully diluted basis. That share count would give Pang Da the right to nominate a member of the supervisory board of Spyker and/or the board of Saab Automobile.
The potential deal also reportedly contains the principles on which the parties would establish a 50/50 joint venture for the distribution of Saab-branded vehicles in China.
Spyker says some of the transactions following the MoU are subject to agreement on definitive transaction documents and certain conditions, including “consents from certain Chinese governmental agencies, the European Investment Bank, GM and the Swedish National Debt Office.”
“This partnership allows us not only to distribute Saab, the iconic European premium brand, in China but also to set up a manufacturing joint venture which will further enhance the competitive position of the Saab brand in China,” said Pang Qinghua, CEO of Pang Da.
“With the new products Saab has launched since it became an independent car manufacturer early last year, such as the all new Saab 9-5 and the Saab 9-4X which have been widely acclaimed, and not in the least the upcoming successor to the current Saab 9-3, we believe the timing is perfect for Saab to enter the Chinese market. Our size, financial strength and competence in addition to our ability to move fast will be crucial to Saab’s success in China.”