Spyker Cars NV, the Dutch supercar maker that owns cash-strapped Saab Automobile, said Chinese auto dealer Pangda Automobile Trade Co. agreed to buy a stake, four days after a deal with Hawtai Motor Group collapsed.
Pangda will take a 24 percent holding in Spyker for 65 million euros ($92 million) at 4.19 euros a share, and the companies plan a carmaking venture in China, the Zeewolde-based manufacturer said today in a statement. Pangda has already paid 30 million euros to buy Saab vehicles for distribution in the Asian country later this year, Spyker Chief Executive Officer Victor Muller said today on a conference call.
Spyker has been seeking a partner to help revive Trollhaettan, Sweden-based Saab, which suspended car production as of late March in a payment dispute with suppliers. Spyker said on May 12 that a nine-day-old investment agreement with Beijing-based Hawtai failed because of a lack of government clearance, while a day later the Chinese carmaker cited “commercial and economic realities” for the plan’s collapse.
“This deal is better than the previous one, because Pangda doesn’t need any approval at all to buy cars; that’s their business,” Muller said.
Spyker Cars rose as much as 19 percent to 4.24 euros, the biggest intraday jump since March 16, and was up 15 percent as of 5:16 p.m. in Amsterdam trading. The stock has gained 18 percent this year, valuing the sports-car manufacturer at 82.5 million euros. Pangda fell 1 percent to close at 34 yuan in Shanghai.
20 Car Brands
Pangda’s stock started trading last month. The Hebei Province-based dealer sells 20 car brands, including vehicles for Toyota Motor Corp. and Volkswagen AG’s Audi division, according to Pangda’s website. Deliveries last year totaled 470,000 vehicles from 926 outlets across China.
Pangda and Saab will set up separate joint ventures for distribution and auto manufacturing, the Chinese company said today in a statement to the Shanghai Stock Exchange. Saab will own as much as 50 percent of the car plant, while Pangda and an undisclosed third party will own the balance, it said. The Chinese distribution venture will be a 50-50 partnership between Saab and Pangda.
Following Pangda’s initial car purchase, “Saab aims to come to an agreement on payment and delivery terms with its suppliers as it secured the liquidity that is required to restart production as soon as possible,” Spyker said.
Saab must still produce the cars that Pangda has ordered, and deliveries in China will start in September or October, Muller said. Pangda may buy another 15 million euros worth of Saab cars as long as sales targets are reached, he said.
The deal with Pangda is conditional on approval for some of the transactions from “certain Chinese governmental agencies,” the European Investment Bank, former Saab owner General Motors Co. and the Swedish National Debt Office, Spyker said.