Saab deal with Chinese company Hawtai terminated: Spyker
Saab and its owner Dutch company Spyker on Thursday announced that a 150-million-euro bailout deal with the Hawtai Motor Group had been terminated after the Chinese company failed to obtain all necessary consents.
"Spyker announces today that Hawtai Motor Group Company Limited and Spyker terminated the agreement by and between Hawtai, Spyker and Saab Automobile with respect to funding and (a) strategic partnership," Spyker said in a press release.
The deal announced on May 3 with Hawtai was expected to see a 120 million euro investment from the Chinese car maker for a maximum equity stake of 29.9 percent in Spyker, and a further 30 million euros in the form of a convertable loan agreement, to finance the ailing Saab.
The deal was subject to approval and conditions including consent from Chinese government agencies, the European investment bank and the Swedish National Debt office.
"Hawtai was subject to definitive transaction documentation and certain conditions which included the consent from stakeholders," said Spyker.
"Since it became clear that Hawtai was not able to obtain all necessary consents, the parties were forced to terminate the agreement with Saab Automobile and Spyker with immediate effect."
© 2011 AFP