Press Release: Saab Automobile Have Reached Conditional Agreement For Sale And Lease Back Of Saab Property

Trollhättan, Sweden: Swedish Automobile N.V. (Swedish Automobile) announces that Saab Automobile AB (Saab Automobile) have reached a conditional agreement with respect to a sale of 50.1% of the shares in Saab Automobile Property AB (Saab Property) with a transaction value of SEK 255 million (EUR 28 million).

A consortium of Swedish real estate investors, led by Hemfosa Fastigheter AB (the Consortium), will purchase 50.1% of the shares in Saab Property for a total consideration of SEK 255 million, reflecting an adjustment to the transaction price for a one year lease free period. The property consists of 483,000 m2 building space. The investors have the right to purchase additional shares to increase the amount to SEK 300 million (EUR 33 million) on the same terms within 30 days after closing.

Saab Automobile will enter into a lease agreement with Saab Property for a duration of 15 years.

As joint owners, the Consortium and Saab Automobile seek to further develop the property, including a refinancing of the property at a later date when commercially feasible. Saab Automobile is being advised by Catella Corporate Finance.

In order to enable Saab Automobile to sell the property, the Swedish National Debt Office (NDO), being the guarantor of the EUR 400 million loan of the European Investment Bank (EIB), is requested to release its pledge in the shares of Saab Property. If the NDO releases its pledge in the shares of Saab Property, the guarantee of the NDO in favour of the EIB will be reduced by EUR 120 million. As a result, Saab Automobile will draw up to a maximum of EUR 280 million under the existing EIB loan (of which EUR 216.9 million have currently been drawn). A further EUR 63.1 million will remain available to Saab Automobile under the EIB loan. Saab Automobile seeks final approval from the EIB, the NDO and the Swedish government to complete the transaction which it expects shortly.

Swedish Automobile and Saab Automobile continue their discussions with several parties to secure additional short-term funding to restart production. There can, however, be no assurance that these discussions will be successful or that additional short-term funding will be obtained.

Jens Engwall, CEO Hemfosa Fastigheter AB, said: “We are very pleased with the agreement with Saab Automobile. We will continue to add value for Saab Automobile in developing the property.”

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7 Comments

  1. Wow! It’s a happy morning. The next good news I’m looking for will be a restart of production so that Pang Da order (and others) can be fulfilled. I was really worried that this might be turning into a Swedish/Dutch version of The Music Man”.

  2. Now let’s get the necessary clearance ….. but now the pressure is heavy on the EIB and Gvt. to approve the transaction … fingers crossed

  3. Now we need the EIB to Approve VA.  Someone (er, ah, em, Swedish gov’t, cough, cough) needs to apply a little pressure to get things moving.  With VA onboard Saab will have additional medium term funding and can pay its bills.  Swade, I’ve read where the EIB refuses to allow Saab to draw down additional money from the loan.  Is this true?  I haven’t seen much in the standard press about this.

  4. This is great news!!!! Now lets get some 2012 Griffins coming off the line. Everyone at SAAB is doing such great dedicated work. Thank you for your commitment to SAAB, Mr. Muller.

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