Saab signs second partnership with China's Youngman

11 years, 7 months ago - 14 June 2011
Saab signs second partnership with China's Youngman
Saab has drummed up another Chinese partner. The Swedish automaker has signed a memorandum of understanding with Zhejiang Youngman Lotus Automobile Company for a €245 million ($352M USD) equity sharing distribution and manufacturing deal.

The new partner will take on a 29.9 percent stake in Spyker for a total of €136 million at €4.19 per share (about $6), and will have the option to nominate two individuals to the Spyker board. In addition, Youngman will own a 45 percent stake in a manufacturing joint venture with Saab and fellow investor Pang Da, which will own 45 and 10 percent stakes in the venture, respectively.

Youngman, Pang Da and Saab are also set to enter into a distribution joint venture which will eventually see Saab vehicles sold in China. Youngman and Saab will each hold a 33 percent stake in that effort while Pang Da will hold the remaining 34 percent.

The memorandum of understanding is still subject to all of the necessary legal approvals from both the European Union and the Chinese government, and as such, is not binding in any way.