North Street Capital to invest $70 million in Saab

Article by Christian Andrei, on October 20, 2011

After months of bad news, it appears that Saab is getting lucky as new companies are interested to invest in the carmaker owned by Swedish Automobile. The last company to invest in the troubled Swedish company is North Street Capital, the same firm which bought Spyker, the luxury sports car business of the Dutch owner of Saab. Apparently, the luxury sports car business of the Dutch owner of Saab aims to invest $70 million in Saab as the Chinese bridge financing looks uncertain.

According to Swedish Automobile, the company will accept a $10 million equity investment from North Street Capital and the other $60 million as a loan to fund its ongoing reorganization.

For those who don’t know, Saab has also received about 100 million crowns ($15 million) last week from China's Zhejiang Youngman Lotus Automobile, as part of a 70 million euro ($97 million) loan.

Back in June, Swedish Automobile signed a non-binding memorandum of understanding for China's Zhejiang Youngman Lotus Automobile to buy a 29.9 percent stake and for fellow Chinese company Pang Da to take 24 percent. Saab has to receive a combined 245 million euros ($338 million). [source: Autonews]

Topics: saab, investment

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