Cash-strapped vehicle maker Saab has secured a $70 million investment from a United States private equity group. North Street Capital is paying $10 million for 2.38 million new shares in Saab's parent firm, Swedish Automobile. It is offering additional $60 million as a loan.
This is the second deal between the 2 companies in one month. The Connecticut-based investor decided to purchase the carmaker's Spyker luxury sports car business for 32 million euros on 29 September. North Street's managing partner is Alex Mascioli, who explains himself as a life-long performance car fan and writes his own car review blog. Swedish Automobile utters it determined to allow his proffer because it no longer thinks it will get an assured investment from 2 Chinese firms.
A company statement whispered: "It has uncertainties that the bridge funding of Pang Da and Youngman, of which a partial payment has been received, shall be paid in full on 22 October 2011. Swedish Automobile bought Saab from United States giant General Motors in January 2010.
Prior to the summer, Swedish Automobile declared that 2 Chinese companies would purchase minority stakes in the firm. Nevertheless, these deals have not yet had dictatorial endorsement in either China or Sweden and forecasters had cast uncertainty on whether the Chinese government would permit the investments. They would also require to be permitted by the European Investment Bank (EIB).
