Zeewolde, The Netherlands – Swedish Automobile, the parent company of Saab, has entered into a €25 million loan agreement with Gemini Investment Fund and has sold its assembly plant in Trollhattan and other real estate to a consortium of Swedish real estate investors.
The convertible bridge loan, which has a six-month maturity, should give Saab enough liquidity to restart production within two weeks along with other funding it has recently received. Production was halted when the company could not pay its suppliers and employees.
The loan can be redeemed without penalty at any time and Swedish Automobile said it intends to do so once it has received funding from its new Chinese partners Pang Da and Youngman.
Saab also reached a conditional agreement to sell 50.1 per cent of the shares in Saab Automobile Property for a transaction value of €28 million. The property consists of a 483,000-square-metre building. The investors have the right to purchase additional shares to increase the amount to €33 million within 30 days after closing. Saab will lease the property for its use for 15 years, plus a one-year lease-free period.
Saab has secured €66 million in additional funding this week, including the bridge loan, sale of its real estate, and an order for €13 million in cars by a Chinese buyer.