SAAB News: How NEVS bought Saab

Sweden's PV4 Väst has access to court documents proving the sale of Saab to NEVS investors. The documents from Vänersborg contain more than 500 pages and confirm some of our assumptions. Today the transmitter announces that originally 33 prospective customers were ready for the purchase of the Saab Automobile AB.

Saab plant Trollhattan
Saab plant Trollhattan

Only a few days after the bankruptcy was opened, the administrators met with the potential buyers. These included Mahindra & Mahindra, Lotus-Youngman, Brightwell, NEVS, a consortium from Sweden and three unnamed bidders. These three suspected investors said their goodbyes early in the negotiations, as did the Swedish consortium, which withdrew from the process due to a lack of available funds.

It went on in quick succession. Brightwell, the Turkish investor, withdrew after it became clear that GM would not issue a new license for the Saab 9-5 II. Then Mahindra & Mahindra jumped off. The Indians had been my favorite for Saab for a long time, and Pang Da pulled out too. The mega-car dealer from China entered the negotiations too late to be able to present an acceptable bid.

So only Lotus-Youngman and NEVS remained, and the negotiations became a duel between the two companies. The first meeting with NEVS already took place at 2. January 2012 held, and the negotiations are described in the documents as lengthy. The contract came in favor of NEVS because, in contrast to Youngman, they could prove that they had the necessary funds. Does that sound familiar to us?

PV 4Väst writes that Youngman would have made an interesting offer from the height. It was "... to consider the highest offer, taking into account the circumstances ..”And this is exactly where Youngman failed. Again, one would like to say. Because the proof of being able to manage the investment independently of official approval was not found. In addition, Youngman did not have an acceptable business plan, so Saab and Scania took a negative view of Youngman. There was also a risk that Youngman could have developed into a competing company against Scania. Both companies build buses, which explains Scania's negative stance.

In contrast to Youngman, investor NEVS was able to prove to the administrators 1.7 billion crowns on a Swedish bank. That was the decisive factor, the talks in the last phase only with NEVS lead. Youngman failed, as he had in negotiations with Victor Muller, once again with his own shortcomings.

Let's come to the exciting question. what NEVS paid for Saab. According to PV4 Väst it should have been completely almost 1.7 billion crowns. The broadcaster has reviewed the transactions and concludes that 1.295 billion has been paid for the bankruptcy estate and 381 million kroner for the real estate share. A first deposit of 150 million kroner was made after the conclusion of negotiations and the rest on the 31. Paid in August. The Saab Automobile AB was therefore sold for 780 million crowns, the Saab Tools AB for 450 million and the Saab Powertrain AB for 65 million.

Originally, NEVS was said to have offered less, but in the course of the negotiations had increased its bid. In addition to the purchase amount, 50 millions of crowns were paid to the administrators. This sum was needed to pay for the additional costs for electricity, heating and maintenance of the Saab plant resulting from the slow negotiations.

Did the revelations bring any surprises? Actually, nothing came that we don't know. Circles that have access to the documents know more details than PV4 Väst has now brought to the public. If you believe them, there is more explosive slumber in the Vänersborg files.

Text: tom@saabblog.net

Image: saabblog.net

2 thoughts on "SAAB News: How NEVS bought Saab"

  • It's good that BMW-Quandt wasn't involved - I wouldn't have ordered a SAAB from this company anyway!

  • With that we can probably put the BMW rumor aside for good ...

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