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Saab terminates deal with Chinese investors and rejects buyout offer

Saab has terminated the provisional agreement with Chinese investors Zhejiang Youngman Lotus Automobile and Pang Da for a 53.9% stake in the Swedish brand for £213 million.

The Chinese investors also made a full bid to buy 100% of Saab but this offer was rejected. However, discussions are still on-going.

Saab has secured a second round of funding in the form of £44.6 million from US private equity group North Street Capital to help the business continue as it restructures.

North Street Capital has paid £6.32m for 2.38 million shares in Saab’s parent company Swedish Automobile and the remaining £37.5m has been provided as a loan.

The Swedish brand won approval on September 22 to go into bankruptcy protection in order to restructure its business. It now has until October 28 before the Swedish courts decide if it will be declared bankrupt.

Saab GB has said it’s still “business as usual” in the UK. Dealers have access to new and used car stock and the business has launched marketing campaigns offering free servicing deals on both new and used cars to help boost confidence.

There’s still no estimated date for when production will restart, but Saab GB will continue to operate the business in the UK as normal and has sufficient funding in place to meet all creditor obligations and will continue to pay all employees, dealers and suppliers.

Saab is offering UK customers two years’ free servicing on all approved used Saabs to attract more business into showrooms.

Matthew Bateman, used car business development manager at Saab GB, said: "“The offer of two years’ free servicing on all approved used Saab vehicles comes with many benefits.

"Not only does the plan provide customers with worry-free maintenance over the two years; it also offers the advantage of a significant cost-saving.”

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