(Stockholm, SWE) - Cash-strapped Swedish automaker Saab has reached 28-million-euro ($40 million) deal to sell and lease back its real estate, its Dutch owner Swedish Automobile said on Tuesday.
"Saab Automobile has reached a conditional agreement with respect to a sale of 50.1 percent of the shares in Saab Automobile Property with a transaction value of 255 million Swedish kroner (28 million euros, 40 million dollars ), Saab's owner said.
The deal still needs to be given the go-ahead by Sweden's National Debt Office, the European Investment Bank (EIB) and the Swedish government. Swedish Automobile said it expected the approvals shortly.
The transaction regards Saab's plant in the western Swedish town of Trollheattan, which consists of 483,000 square meters (over 5.0 million square feet) building space.
Its price was ajusted to reflect a one year lease-free period.
The buying consortium is led by Hemfosa Fastigheter.
"The investors have the right to purchase additional shares to increase the amount to 300 million kroner on the same terms within 30 days after closing," the deal stipulates.
Swedish Automobile, formerly known as Spyker, had said in April it was in talks to sell and lease back its real estate in order to quench its liquidity crisis.
Saab's plant shut down for seven weeks during April and May as suppliers halted deliveries over unpaid bills. Production started up again at the end of May for less than two weeks before coming to a halt on June 8.
The iconic carmaker's cash difficulties are such that it announced last week it did not have the money to pay its staff. On Monday, it said a 13-million-euro ($18 million) order from an undisclosed Chinese buyer would allow it to pay staff, but not restart production.
On Tuesday, it stressed again it was in talks "with several parties to secure additional short-term funding to restart production."
"There can, however, be no assurance that these discussions will be successful or that additional short-term funding will be obtained," it warned.
Saab was rescued at the last minute in 2010 when auto industry minnow Spyker bought the brand from US auto giant General Motors for $400 million.
In its 20 years as a GM brand, Saab never turned a profit.
The new owner had big ambitions for Saab but the carmaker has since then lurched from one cash crisis to another. It announced earlier this month tie-ups with Chinese car distributor Pang Da and manufacturer Zhejiang Youngman Lotus Automobile.
