Koenigsegg Group AB Links With Beijing Automotive Industry Holdings Co. Ltd (BAIC) for SAAB Transaction
09 September 2009
Koenigsegg Group AB has signed a Memorandum of Understanding (MOU) with Beijing Automotive Industry Holdings Co. Ltd. (BAIC) to explore growth opportunities in the Chinese and international markets for the products of SAAB Automobile and BAIC.
Under the terms of the MOU, BAIC would become a non-controlling minority shareholder in Koenigsegg Group. Koenigsegg Group will own 100% of SAAB Automobile AB. The intention is to conclude an agreement later this year. Due to confidentiality agreements signed, further facts cannot be discussed at this time, according to a statement by the companies.
This is an important step on the road to a new SAAB Automobile. We have a solid business plan, an important partnership and we are now in a position to go ahead without any governmental financing.—Christian von Koenigsegg, CEO of Koenigsegg Group AB
Koenigsegg Group will now focus on the ongoing discussions with the Swedish National Debt Office about the government guarantee for the loan with the EIB that SAAB Automobile has applied for.
In August, GM signed a stock purchase agreement with Koenigsegg Group AB regarding the sale of 100% of the shares of SAAB. Conditions to close the sale include expected funding commitments with Swedish government support and guarantees, as well as transitional assistance from GM, as Saab becomes independent. (Earlier post.)