Spyker Cars Finalizes Purchase of Saab Automobile from GM

2010-02-23

*Transfer of ownership and operations to Spyker Cars takes place

*Previously announced wind down of Saab operations ends

*A new era begins for an iconic auto brand

General Motors and Spyker Cars NV today announced that they have finalized the deal for Spyker to purchase Saab Automobile AB.

Going forward, Saab and Spyker will operate under the Spyker (AMS:SPYKR) umbrella, and Spyker will assume responsibility for Saab operations.  The previously announced wind down of Saab operations has ended. “This transaction represents the successful outcome of months of hard work and intense negotiations, all aimed at securing a sustainable future for this unique brand, and we are pleased with the positive outcome,” said John Smith, GM vice president for corporate planning and alliances.  “This is a great day for Saab employees, dealers and suppliers, and a great day for millions of Saab customers and fans worldwide.”

“Throughout negotiations over the past year, GM has worked with many parties, including governments and investors, to find a solution for Saab,” said Nick Reilly, president, GM Europe. “I’m very pleased that we could come to a positive conclusion, one that presents a viable future for Saab and preserves jobs in Sweden and elsewhere.”

Spyker Completes Deal for Saab

By RICHARD S. CHANG

After months of on-again, off-again discussions, Spyker has completed its deal to purchase Saab from General Motors.

While the Hummer deal crumbles a world away, General Motors announced that it had completed a deal for at least one of its divisions.

Spyker Cars is now the proud owner of Saab. And according to the news release from G.M., the wind down of Saab’s operations is over.

“This transaction represents the successful outcome of months of hard work and intense negotiations, all aimed at securing a sustainable future for this unique brand, and we are pleased with the positive outcome,” said John Smith, G.M. vice president for corporate planning and alliances.

G.M. agreed to the deal in late January. Early this month, Spyker revealed its broad plans for the Swedish company, saying that the overall company name would change to Saab Spyker Automobiles.

“Spyker believes that through the purchase of Saab, it has a rare opportunity to acquire and rebuild a global car brand, which will be repositioned toward an independent performance-oriented niche car company with an industry-leading environmental strategy,” Spyker said in a news release at the time.

In addition to the planned release of the Saab 9-5 flagship sedan this summer and the 9-4x crossover early next year, Spyker said it ntended to develop a new 9-3 model and possibly a 9-1 to slot at the bottom of the product line.

On tuesday, Victor Muller, the chief executive of Spyker, emphasized his intention of bringing new “bold” cars to the Saab brand.

“We will reinforce the emotional experience between Saab drivers and their cars and we will focus on Saab’s historical strengths in the fields of independent thinking, aircraft heritage, ecological performance and motorsport,” he said.

He added, “Real Saabs, Saab Saabs.”

One auto analyst predicts that Saab and Spyker will benefit from the sharing of “engineering know how and technologies…activities in marketing and sales, and…certain parts and components in order to obtain access to supplier and partner resources,” which in turn will lead Spyker to reposition itself as “a performance-oriented niche car company with an industry-leading environmental strategy.”

Spyker CEO Victor Muller blames consumers’ difficulties to acquire financing as a major reason why Saab sales dropped by more than half  between 2008 and 2009, and understands, like any brand, the importance of loyalty: "Saab has to do nothing but regain its existing and old customers because that in itself would be in enough to create a very strong business model."

But will that business model be strong enough to sell enough Saabs to repay all those loans? Even before the end of 2010, we’ll probably know whether we’re seeing the start of a Saab success story, or the next episode of “As the Saab Turns.”

Spyker Secures Further Financing For SAAB- EU Approves Swedish State Backing

$25 million loan will allow Spyker to make scheduled payments to GM for the purchase of Saab.
Dutch automaker Spyker has secured further financing to help solidify its deal with GM for the purchase of the Saab brand.

2008 Saab 9-4X BioPower Concept

Spyker has received a convertible loan of $25 million (US) from an investment group which is part of the Heerema Holding Company, Inc.

The term of the loan is for 2 years, with a Eurobor interest rate of 10 percent. The loan is also convertible into stock priced at 4 euros per share. The loan is contingent upon Spyker receiving a €400 million loan from the European Investment Bank to finance its purchase and takeover of Saab.
The Saab deal has been guaranteed by the Swedish government, in a move approved by the European Commission's Directorate General for Competition.
Spyker CEO Victor Muller said in a press release, "We are delighted that Heerema has decided to become an investor in our company."
Pieter Heerema, of Heerema Holding Company, Inc., believes that the investment will pay off and that Spyker can turn the Saab brand into a success.
"We are confident that when the company's management gets the opportunity to implement the business plan we will see a good financial return on our investment as well," Heerema is quoted as saying in the Sypker press release.
Spyker stated they fully support Saab's business plan to become "a stand-alone niche manufacturer with three to four model lines: 9-3 (sedan, hatchback, sports estate, X and convertible) and 9-5 (sedan, sports estate and X) and the 9-4X for both the US and European markets." Furthermore, the company will investigate the potential of adding a fourth smaller car line (9-1), but no decision has been made as of yet.
To become profitable, Saab will launch the 9-5 this summer, the 9-4X in early 2011, and the redesigned 9-3 in 2012. They will be marketed as rivals to Audi and BMW, with the support of a "re-energized" sales and distribution approach.

GM strikes deal to sell Saab brand to Spyker

Deal Journal

An up-to-the-minute take on deals and deal makers.

JANUARY 26, 2010

BREAKING NEWS: Spyker Buys Saab for $74 Million in Cash

By Michael Corkery

Dutch sports car maker Spyker Cars has agreed to buy Saab from General Motors for roughly $74 million in cash, according to people familiar with the matter. GM, which confirmed that a deal had been reached, will also receive preferred shares in the new company.

Spyker, which makes only a few dozen cars a year, will contribute $74 million in cash to the deal, while the European Investment Bank will provide a 400 million euro loan ($566 million) guaranteed by the Swedish government.

The deal would mark a hopeful turnabout for for Saab, the Swedish car brand that GM had begun to wind down because it couldn’t reach a satisfactory deal to sell the company.

As part of the deal, GM wil retain preferred shares worth about $326 million in Saab.

Spyker unsuccessfully tried to reach a deal for Saab late last year and returned to the negotiating table this month.

Saab has total assets, including plants, equipment and cash of about 1 billion euros , and liabilities of 528 million euros.

Spyker Chief Executive Victor Muller said in an interview with the WSJ’s Deal Journal last month that he wanted to restore the “Saabish” qualities that have inspired fierce loyalty among Saab owners around the world. Hundreds of Saab drivers have been staging demonstrations in Detroit and Sweden to lobby GM to sell the brand rather than let it die.

Spyker intends to change its name to Saab Spyker Automobiles.

As part of its financing package, Spyker will receive a $50 million loan from Tenaci Capital B.V., which is owned Muller. Meantime, Spyker’s chairman, the Russian banker Vladimir Antonov, has agreed to effectively cash out of the company and sell his shares to Tenaci.

JAN. 26, 2010

BY TIM HIGGINS

FREE PRESS BUSINESS WRITER

General Motors has reached a deal to sell Saab to Spyker Cars NV, GM announced today.

As part of the binding agreement, Spyker will form a new company called Saab Spyker Automobiles and it will carry the Saab brand.

The deal, which is subject to governmental approvals, is expected to close in mid-February, according to a GM statement.

The Swedish government is reviewing the deal and requests for guarantees of a European Investment Bank loan.

"Today’s announcement is great news for Saab employees, dealers and suppliers, great news for millions of Saab customers and fans worldwide, and great news for GM,” John Smith, GM vice president for corporate planning and alliances, said in a statement.

GM did not disclose a sales price.

GM Reaches Agreement to Sell Saab to Spyker

John Smith, vice president, global planning and alliances, will host a conference call for media at 2:00 p.m. EST (8:00 p.m. CET) to provide additional perspective on Saab.

       (800) 398-9367 (U.S.)

·         +1 (612) 332-0226 (international/caller-paid)
·         No access code is required
·         Please provide your name and affiliation and ask for the GM conference call

New 9-5 Interior

An audio file of this call will be available shortly after the end of the call at http://media.gm.com.