Youngman and Pangda will submit Saab stake acquisition plan to NDRC within three weeks
Published August 4, 2011
If Saab canÃ¢t find an investor to pay its employees in two weeks, it will be forced to start liquidation process. Then its deals with Pangda and Youngman will become invalid completely, but due to restrictive policies by the Chinese government, the two Chinese companies are not allowed to make more investment to save Saab at the moment.
According to ChinaÃ¢s Interim Measures for Approval of Overseas Investment Projects, the projects with investment amount above $50 million should be approved by ChinaÃ¢s National Development and Reform Commission (NDRC) before the State Council. According to the latest deals inked by Youngman and Pangda with Saab, the two Chinese companies will pay 245 million euros to acquire Saab stake. They are likely to submit the feasibility plan for Saab case to NDRC within three weeks.
Pang Qingnian, YoungmanÃ¢s chairman, said that they could not make further investment in Saab by buying vehicles, as Youngman has limited quotas for vehicle import, but he believes Saab could go through the difficulties through various financing means.
PangdaÃ¢s chairman Pang Qinghua said that if the plan could obtain approval in two or three months, SaabÃ¢s financial problem wonÃ¢t exist, but there will be crisis if the approval takes a longer period.