Saab – Hawtai Q&A
1. Q: What does this deal means for the financial future of Saab Automobile?
A: By signing this agreement with Hawtai, as well as securing the convertible loan with Gemini , Saab Automobile has conditionally secured around EUR 180 mln/SEK 1.8 bln in short- and mid-term financing. Saab will work with its suppliers to resume deliveries as soon as possible and expects resume production within one week.
2. Q: Will this deal change the ownership structure of Saab and Spyker?
A: There will be no change in the ownership structure of Saab. Spyker will remain the sole owner of Saab Automobile AB. However, there will be a significant change to the ownership structure of Spyker, making Hawtai a large minority shareholder. Hawtai has subscribed to a 29.9 percent equity stake in Spyker.
3. Q: Hawtai could obtain almost 31 million shares in Spyker. Wouldn’t that constitute a basic takeover of the company?
A: Hawtai has agreed to cap its stake in Spyker at 29.9%. If it would exceed the 29.9% threshold, it will sell the remaining shares to an independent third party.
4. Q: You say the agreement is subject to consent from certain Chinese governmental agencies, the European Investment Bank, the Swedish National Debt Office and General Motors. So how done is this deal really?
A: The agreement is done subject to the relevant approvals all of which we expect to obtain timely.
5. Q: Why did you choose Hawtai as a partner? There were reports that you were also talking to other Chinese car manufacturers.
A: Spyker and Saab have over the past time held exploratory talks with several prospective partners, and all of them had their merits. In the end, Saab and Hawtai are convinced that mutual interests are served best through this agreement.
6. Q: Can you give some more key figures on Hawtai? How many employees, sales, production, size of company?
A: There are many similarities between Hawtai and Saab. We are comparably sized with a growing sales volume. Hawtai is a premium Chinese car manufacturer with 4600 employees of which 120 foreign experts. They have invested significantly in the expansion of production capacity to reach 350.000 cars, 300.000 diesel engines and 450.000 transmissions.
7. Q: So what does this agreement mean for your plans to produce cars in China?
A: The agreement between Spyker and Hawtai entails both production and distribution of Saab branded vehicles in China. More details about Saab production in China will be disclosed at a later stage.
8. Q: What does the technology agreement between Saab and Hawtai potentially entail?
A: Both Saab and Hawtai have interesting technologies that could be of interest to one another and we are confident that both parties will benefit from this partnership as we go forward. However, at this point we can’t provide any more detail.
9. Q: Can you elaborate on the "several joint ventures of manufacturing and distribution" you are mentioning?
A: The proposed set-up is currently being reviewed by our financial and legal experts, and includes a joint venture for manufacturing and one for distribution of both imported and locally produced vehicles.
10. Q: What about CATC? I thought you signed them up to take care of distribution in China.
A: CATC will be responsible for the import of Saab vehicles into the Chinese market. Together with Hawtai, Saab will distribute the vehicles and set up manufacturing, complementing our set up with CATC.
11. Q: When will you restart production again?
A: We target to resume production within one week, and have started working with our suppliers already to resume deliveries immediately. Pending agreement on delivery schedules and outstanding payment issues with our suppliers, Saab Automobile aims to restart production as soon as possible.
12. Q: Now that you have secured financing, how will you win back confidence? How can you convince people that this will not happen again?
A: With the current agreements in place, we believe we will be able to stabilize operations and restart production. Saab and Spyker are committed to restoring confidence among employees, dealers, suppliers, customers and other stakeholders as soon as possible. Victor states: “If it does not destroy you, it makes you stronger!”
13. Q: Now that you secured all this funding, is Vladimir Antonov still a candidate to become a shareholder in Spyker?
A: Yes. Mr. Antonov has declared time and time again his intention to become an investor in Saab/Spyker. Mr. Antonov was recently cleared by the Swedish National Debt Office and General Motors to become a shareholder in Spyker and is now awaiting approval from the Swedish government and the EIB.
14. Q: You still speak of executing your business plan. Is that going to be changed after recent events?
A: Spyker and Saab stated on March 29 that they would review their full-year targets and that it would be reasonable to assume that previously communicated targets would not be met.