As part of a distribution and manufacturing joint venture, Spyker has signed a memorandum of understanding with Zhejiang Youngman Lotus Automobile Co., which will buy an equity stake for 136 million euros ($195 million) in the company. Last May, Saab and its owner Spyker Cars NV inked a contract with Chinese car distributor Pang Da that’s valued at up to 110 million euros.
Under this joint venture, Spyker and a partner in China will start to produce Saabs and a new joint brand within two years.
Youngman will receive a 45% stake in the manufacturing joint venture in China while Saab got 45% and Pang Da got 10%. In addition, Youngman will take a 33% stake in the distribution joint venture that will have Pang Da getting 34% and Saab holding 33%.
Youngman will make a payment of 136 million euros at 4.19 per share to get a 29.9% stake in Spyker on a fully diluted basis. Pang Da will hold a 24% stake in Spyker and is set on making a 109 million euros investment in the company.
Last Monday, Victor Muller, the CEO of Spyker and Saab, said that after inking the MOU last May 16 with Pang Da, it quickly moved to find the best manufacturing partner to join Saab and its joint ventures. Muller added that he is “convinced” that Youngman has all the qualities that would lead to the success of Saab and the joint ventures.