Troubled car manufacturer General Motors has agreed to sell its Saab Automobile division to Swedish high-performance sports car maker Koenigsegg by the end of the year, it was confirmed today.
The agreement comes after weeks of uncertainty concerning the level of support for the bid from Koenigsegg's backers, after a preliminary deal for the sale was struck in June.
Questions regarding the financing of the deal remain, however, and a statement from GM Europe was vague about the agreed terms beyond calling the deal a "stock purchase agreement".
The Swedish government is negotiating with Koenigsegg on a possible guarantee for a loan to Saab from the European Investment Fund, a pre-condition for the deal.
"This contract is an important step in the journey to a potential deal," said Carl-Peter Forster, head of GM Europe, in the statement. "The closure of the deal is contingent on the funding commitment from the European Investment Bank, guaranteed by the Swedish government."
Sweden has reaffirmed its commitment to guarantee the $600 million loan applied for at the European Investment Bank, while Koenigsegg and GM would contribute a combined $500 million in capital, an unamed source said.
Koenigsegg spokeswoman Halldora von Koenigsegg said today the firm expected to close the deal within about a month, while GM said it saw the deal closing by the end of the year.
"As part of the proposed transaction, GM and Saab will continue to share technology and services during a defined time period. This will be managed through licenses and service agreements," GM Europe said.
GM recently completed a 40-day restructuring under bankruptcy protection, and is now 61 per cent-owned by the US government, with smaller stakes held by Canada, a United Auto Workers union healthcare trust and former unsecured bondholders. The restructuring has cut debt from $54.4 billion (€39 billion) to $17.3 billion.
The US and Canada have provided about $60 billion in loans.
Agencies