GM Sells Saab Brand To The Swedes
General Motors Corp. has signed a deal to sell its Saab unit to a consortium led by Swedish carmaker Koenigsegg Automotive AB.
The memorandum of understanding, signed Tuesday by Saab and GM, said the sale includes an expected $600 million funding commitment from the European Investment Bank and is guaranteed by the Swedish government. Additional funding will be provided by GM and Koenigsegg Group AB.
The pricetag was not disclosed and the sale is expected to be completed by the end of the third quarter.
Saab went into creditor protection Feb. 20 in an effort by GM to sell the unit. Interested bidders reportedly also included private equity firm The Renco Group Inc. and investors Merbanco Inc.
Documents made public on Monday showed the luxury Swedish car maker Koenigsegg Automotive AB had applied to start a new company named Koenigsegg Group, fueling speculation that it was close to the takeover of Saab.
In an application to the Swedish Companies Registration Office, Koenigsegg lists shareholders in the new company as itself, its owner Christian von Koeningsegg's company Alpraaz AB, Norwegian investment company Eker Group, as well as San Diego-based Mark Bishop.
Koeningsegg would own 23.4 percent of the shares in the new company, Alpraaz 42.6 percent, Eker Group 11.8 and Mark Bishop 22.2 percent, according to the papers made public on Monday.
"The object of the Company shall be to, either directly or indirectly through the Company and its subsidiaries, engage in the production and sale of passenger cars and thereto related products and services," Koeningsegg wrote in the application.
According to reports Thursday by Swedish television, Koeningsegg was the last remaining bidder in the process to buy Saab.
Saab spokeswoman Gunilla Gustavs said Monday that a deal with a new owner would be announced shortly, but declined to elaborate.
Detroit-based GM filed for bankruptcy protection June 1 and has said it plans to shed its Saturn, Hummer, Pontiac and Saab brands to focus on four core brands: Chevrolet, Cadillac, Buick and GMC.