Saab obtains 150 mln euro funding in China: Spyker

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Saab and its owner Dutch carmaker Spyker have signed a strategic partnership agreement in China under which the embattled Swedish car maker will obtain 150 million euros in funding, Spyker said on Tuesday.

The partnership with the Hawtai Motor Group followed an announcement on Monday in which Saab secured a short-term cash injection of 30 million euros ($44.6 million dollars) to restart production within a week.

"Spyker and Saab signed an agreement with Hawtai Motor Group Limited. This agreement conditionally secures medium-term funding," Spyker said in a press release.

"It includes financing in the form of subscription agreements to the amount of 150 million euros as well as a strategic alliance for China including joint ventures in manufacturing, technology and distribution," it said.

Hawtai will invest 120 million euro for a maximum equity stake of 29.9 percent in Spyker on a fully diluted basis.

"The remaining 30 million euro will be in the form of a convertible loan agreement with a six-month maturity, an interest rate of seven percent per annum and a conversion price of 4.88 euros per share.

Spyker bought Saab from General Motors in January 2010, but has been struggling to find funding to keep the embattled Swedish car manufacturer running.

Saab was forced to halt production at the beginning of April due to a dispute over unpaid bills.

© 2011 AFP

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