As a part of the transaction Hawtai was to invest €120 million for up to a maximum of a 29.9% equity stake in Spyker on a fully diluted basis. The remaining €30 million would have been in the form of a convertible loan agreement in the amount of €30 million with a 6-month maturity, an interest rate of 7% per annum and a conversion price of €4.88 per share.

As a result of this termination, Saab Automobile may enter into a strategic partnership with Hawtai or another Chinese party on manufacturing, technology and distribution in China. Spyker had indicated when the agreement was announced earlier in May that the transaction with Hawtai was subject to definitive transaction documentation and certain conditions, which included the consent of different stakeholders.

Hawtai was not able to obtain all the necessary consents, Spyker said, and the parties were forced to terminate the agreement with Saab Automobile and Spyker with immediate effect. The parties will continue their discussions about a possible cooperation, however now on a non-exclusive basis.

Spyker and Saab Automobile continue to work on securing short- and medium-term funding. To that end Spyker and Saab Automobile are negotiating equity and debt financing and/or technology licensing with various (strategic) Chinese partners.

BAIC has indicated that it does not have any problems with Saab’s ongoing discussions with other Chinese partners.

Discussions continue with the European Investment Bank (EIB) on completion of the current €29 million drawdown under the EIB loan facility, on obtaining EIB consent for the sale of Saab property released under the collateral of the Swedish National Debt Office (NDO) and on various conditions proposed by the EIB. As soon as the EIB drawdown or other equivalent funding is confirmed, Saab Automobile plans to restart production depending on the outcome of discussions with its suppliers on terms to resume supplies of materials and services to Saab Automobile.