Summary
General Motors Company (GM) announced on August 18, 2009, that it has entered into a stock purchase agreement to sell 100% of its shares in Saab Automobile AB to Koenigsegg Group AB. This agreement marks a significant divestiture for GM as it continues its restructuring efforts following its emergence from bankruptcy earlier in the year. The transaction is anticipated to close within the next few months, contingent upon several key conditions. These include securing funding commitments from the European Investment Bank or other financial institutions, with guarantees from the Swedish government, and continued transitional assistance from GM. The proposed deal also outlines ongoing technology and service sharing between GM and Saab through defined license and service agreements for a specified period, indicating a strategic partnership even after the sale.
Key Highlights
- 1GM has signed a definitive agreement to sell 100% of Saab Automobile AB to Koenigsegg Group AB.
- 2The sale is a strategic divestiture for GM as part of its ongoing restructuring efforts.
- 3The transaction is expected to close within the next few months, subject to certain conditions.
- 4Key closing conditions include funding commitments from the European Investment Bank (or other institutions) guaranteed by the Swedish government.
- 5GM will provide transitional assistance to Saab as part of the agreement.
- 6GM and Saab will continue to share technology and services through licenses and service agreements for a defined period post-sale.