Pangda confident about getting approval for three way Saab deal

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Pang Qinghua, chairman of Pangda Group, said during an interview on June 16 that the due diligence on its partnership with Saab is coming to an end, and he is confident that their three-party deal will get government approval after checking the due diligence report.

It’s a procedure for Chinese companies to conduct due diligence if they want to acquire or partner with foreign companies, and then they are allowed to submit to the regulator an application for opening a joint venture.

However, the application should be submitted by Youngman Automobile, said Pang Qinghua. He has urged Youngman Automobile’s chairman Pang Qingnian to file the application as soon as possible.

It is learned that Pangda will buy about 2,000 Saab cars this year. The first group of these Saab cars will be imported to China this October, including old Saab 9-3, Saab 9-4X, and Saab 9-5. Pangda will open 20 self-operated dealerships by the year end to sell these cars. In view of such a huge investment and such a short agency contract term (one year once), Pangda believes it’s a good way to protect its interest as a dealer by participating in the production sector.

Panda also believes a 10% stake in the production sector is the best proportion, and it may sell a part of its stakes in Spyker in future. The reason for its buying a 24% stake now is to gain a controlling share in Spyker together with Youngman Automobile, which plans to acquire 29.9% stake in Spyker.

Pang Qingnian is expected to be chairman of the Saab production joint venture in future, while Pang Qinghua is expected to be chairman of the sales joint venture.