💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

UPDATE 2-Swedish govt receives new Saab financing plans

Published 09/07/2009, 06:05 PM

* Koenigsegg has shown Swedish govt new Saab financing plan

* Extra loans from Swedish govt no longer part of plan

* Koenigsegg expected to present financing in coming days

* Swedish paper: Chinese car company going in as part owner (Adds report from Swedish paper)

STOCKHOLM, Sept 8 (Reuters) - Luxury sportscar maker Koenigsegg has presented the Swedish government with a new plan for financing its purchase of Saab Automobile, a government official said on Monday.

State Secretary Joran Hagglund told Reuters the plan no longer involved any extra loan from the Swedish state on top of guarantees for funding from the European Investment Bank (EIB). He declined to comment on the details of the plan.

"They have presented us with a plan .... We will look at it from our side and decide how credible it is," Hagglund said.

"As I understand it, they will present information on the matter in the coming days."

Sweden's Dagens Industri business daily reported late on Monday that a Chinese car manufacturer would be going in on the Saab deal as part owner, quoting an unnamed source as saying that it has helped cover what is understood to be a 3 billion Swedish crown ($420 million) gap in financing for the purchase.

"You should look into GM's circle of partners in China when you are looking after who is putting money into Koenigsegg Group," the source was quoted as saying in the paper.

Dagens Industri added that there was a big possibility that the Shanghai Automotive Industry Corporation (SAIC) is the Chinese investor.

Hagglund said the Swedish government was still negotiating with Koenigsegg on a possible guarantee for a loan to Saab from the EIB, funds which are seen as vital for the Koenigsegg deal to go through as well as for Saab's survival.

Koenigsegg struck an accord in June to buy Saab from U.S. carmaker General Motors, backed by U.S. and Norwegian investors. In August, GM and Koenigsegg said they had a deal ready but questions regarding financing remained.

Koenigsegg Chairman Augie Fabela was quoted as saying that the group also needed an additional 3 billion Swedish crowns of financing in addition to the EIB loan.

Koenigsegg told Reuters on Aug. 18 the firm expected to close the deal within about a month. GM said it saw the deal closing by the end of the year.

GM, which emerged from bankruptcy protection on July 10, also plans to sell its Saturn and Hummer brands and its European operations, centred on Opel. ($1=7.139 Swedish Crown) (Reporting by Victoria Klesty; Editing by Simon Jessop and Richard Chang)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.