Pangda Group to join hands with Youngman Lotus to make and sell Saab cars

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Pangda Group announced on June 13 that it has signed an MOU with Saab, Spyker and Zhejiang Youngman Lotus Automobile Co. The two Chinese companies will seek government approval for investing in Spyker and founding two joint ventures with Saab for auto production and sales respectively in the Chinese market.

According to the announcement, Pangda, Saab and Youngman Lotus will hold 34%, 33% and 33% in the sales joint venture respectively. The joint venture’s registered capital will be 50 million yuan, and its total investment will be 125 million yuan. The venture’s board will consist of three directors, with each party naming one director. The validity of the future contract will be 30 years.

The stakes of Pangda, Saab, and Youngman Lotus in the production joint venture will be 10%, 45%, and 45% respectively. The registered capital and total investment will be determined after negotiation among the three parties. The board will have five members, with two named by Saab, two by Youngman Lotus, and one by Pangda. The validity of the future contract will be 50 years.

Besides, Pangda will increase its investment in Spyker from previous 65 million euros to 109 million euros, with its stake in Spyker staying at 24%. Youngman Lotus will acquire 29.9% stake in Spyker for 136 million euros.

The announcement also points out that the there are huge uncertainties whether the MOU could come to reality eventually as the final terms and conditions concerning the deal are still pending further negotiation among the four parties and approvals from the concerned authorities.

However, Pangda Group’s board secretary Wang Yin said that they believe the acquisition could get approvals from the concerned authorities successfully.