Mahindras eye stake in Saab Automobile

[Steve McF]

Happy new year to everyone on here!!!

Let's start the Saab new year with a potential glimmer of positivity!!! ;-)

Mahindras eye stake in Saab Automobile
A STAFF REPORTER - The Telegraph, Calcutta, India
 
On the block 
Calcutta, Dec. 31: Mahindra and Mahindra (M&M) is reported to have set its sights on bankrupt Swedish car maker Saab Automobile.

Reports suggest that M&M could be in the process of setting up meetings with two court-appointed administrators who are overseeing Saab’s bankruptcy and M&M could look at buying a stake in the firm.

M&M, however, is tightlipped on these developments. Pawan Goenka, president — automotive of M&M, told The Telegraph, “I would not like to comment on these reports.”

This would not be the first time M&M could be involved in an overseas purchase. In the last few years, the company had acquired Korean car maker Ssangyong for $368 million and forged an alliance with US truck maker Navistar.

In its efforts to diversify, M&M had also picked up a stake in electric car maker Reva and has also bought back its stake from its joint venture with France’s Renault.

Saab was originally part of General Motors (GM). However, in 2010, GM sold the company to Dutch sports car maker Spyker Cars NV, which later changed its name to Swedish Automobile NV. However, GM continued to provide technology to Saab.

Saab filed for bankruptcy early in December after running out of cash and after a nine-month battle with Swedish Automobile. The company had stopped production in April and suffered a $263-million loss in the first half of 2011.

In October, reports suggested that Chinese car maker Youngman and automotive retailer Pang Da had jointly agreed to a $40-million takeover of Saab.

Following that, GM had announced that it would not continue to support Saab because of its alliance with the Chinese counterparts. As a result, Saab started working on setting up a new proposal that did not involve a Chinese partner as the majority stakeholder.

The company said, “After having received the recent position of GM, Youngman informed Saab Automobile that the funding to continue and complete the reorganisation of Saab Automobile could not be concluded. The board of Saab subsequently decided that the company without further funding would be insolvent and that filing bankruptcy was in the best interests of its creditors.”

Saab’s court-appointed receivers Hans Bergqvist and Anne-Marie Pouteaux said in a statement they had met a number of Swedish and foreign players who have expressed interest in a possible purchase of all or parts of the business.

Traditionally, all Saab variants start with the number nine. Before stopping production, the company used to make 9-3 and 9-5 sedan and SUV variants.
 

[Steve McF]

More.....

http://www.autotalk.com/saab-may-have-found-a-buyer-13186/

[Steve McF]

And some more...

http://www.businessweek.com/news/2011-12-31/saab-auto-said-to-attract-interest-from-india-s-mahindra.html

[Kev_Mc]

I hope something positive can come out of this for Saab, and not just an asset stripping exercise.

[Max Headroom]

I know its a totally different scenario but could it be possible Mahindra is looking at emulating Tatas success with Jaguar?

[Steve McF]

You mean Tatas success with Land Rover, surely?? :-D 

[Max Headroom]

Jaguar was sold to Tata in 2008, and as far as I understand has had great success. I can't comment on the Land Rover side of the deal with Ford as all I know about it is that Tata now own that too but to what degree of success I have no idea.
The only reason I hear good things about Jaguar is because my cousin has business dealings in the 'upper echelons' with Jaguar in Bahrain

[Steve McF]

Land Rover is the profit powerhouse within JLR. Most car companies have some SUVs in their lineup. But with JLR, the SUVs are the bulk of the volumes and sellers, and the Jags sell relatively few units by comparison, with LR outselling Jag by 4 or 5 vehicles to 1.

However, might Tata now be in a position to challenge Mahindra and add Saab to their JLR stable?

http://www.indiancarsbikes.in/cars/tata-motors-interested-acquiring-ailing-swedish-brand-saab-53798/

[Steve McF]

More soap opera!!!!

SWEDEN: Lars Carlstrom re-emerges behind potential Indian Saab bid

3 January 2012 | By: Simon Warburton

Former Russian businessman Vladimir Antonov's aide Lars Carlstrom has emerged as the entrepreneur behind a new potential Indian bid for bankrupt Saab.

Speculation has centred on the Mahindra & Mahindra group backing any offer for the failed automaker although Carlstrom is declining to confirm any identity with the Swedish manufacturer now in the hands of receivers in Gothenburg.

However, there seems to be a rapidly diminishing window of opportunity - perhaps just a week - available to make any bid as receivers weigh up options.

"They [Indians] have expressed an interest and want to go ahead and explore the opportunity," Carlstrom told just-auto from Sweden. "I have been in talks with [them] for at least two years.

"We don't know exactly what they are looking for - engineers or scrap - it is too early to say. It needs to happen in the next week or it is just scrap you can pick up - otherwise the engineering side is completely diluted."

Carlstrom worked with Antonov, who appeared to be repeatedly thwarted in his attempts to invest in Saab, notably by the European Investment Bank (EIB), but is now no longer involved in the Russian businessman's affairs.

Several potential suitors are thought to have expressed an interest in acquiring some or all of Saab but it appears time is of the essence to realise assets from the bankrupt manufacturer whose EUR270m (US$352m) loan from the EIB was underwritten by the Swedish government.

Officials from the Swedish National Debt Office (SNDO) have previously indicated it could recoup that guarantee by realising pledges in Saab's parts business and tooling manufacturing.

"We hope we will get our money back, at least the valuation of the collateral," SNDO project leader for the Saab guarantee, Daniel Barr, told just-auto recently.

The Vanersborg District Court formally confirmed Saab's bankruptcy placing with Hans Bergqvist from Delphi in Gothenburg and Anne-Marie Pouteaux at Wistrand Law Firm in the same city appointed as trustees.

Neither Mahindra nor Delphi was available immediately for comment.

© 2012 All content copyright just-auto.com.

[Max Headroom]

More soap opera!!!!
 

Blimey! No kidding!

[Steve McF]

Investors are still circling Saab after Swedish court declared car maker bankrupt

Wed, Jan 04, 2012

A NUMBER of potential buyers have shown interest in parts or all of bankrupt Saab and there is a chance a deal can be made which allows some operations to continue, the company’s receivers said last week.

The Swedish car maker was declared bankrupt by a court in December, ending a nine-month battle by its Dutch owner, Swedish Automobile NV, to stay afloat. It has not made any vehicles since April and several rescues have failed.

Saab’s court-appointed receivers, Hans Bergqvist and Anne-Marie Pouteaux, said in a statement they had met a number of Swedish and foreign players who have expressed interest in a possible purchase of all or parts of the business.

“The contacts made so far have been positive and provide real hope that there may be alternatives, and even combinations of solutions that could result in some continued activity and a suitable development of the bankruptcy estate,” they said.

German magazine auto motor und sport reported last week that Saab was in talks with the Turkish government. A source familiar with the situation said a Turkish delegation visited Sweden to express interest in Saab but declined to offer more details.

Swedish business daily Dagens Industri reported that one of India’s biggest car manufacturers may also be interested in buying parts or all of the company.

Saab’s last rescue plan, involving China’s Zhejiang Youngman Lotus Automobile, was rejected by former owner General Motors, which still licenses technology on which the building of Saab cars depends.

© 2012 The Irish Times

[Steve McF]

INDIA: Is Mahindra & Mahindra a third Saab bidder?

27 January 2012 | By: Simon Warburton

Mahindra & Mahindra is declining to comment on speculation it may be a third party interested in buying bankrupt Saab.

So far, the field has been confined to two runners and riders, namely Chinese manufacturer Youngman and Turkish private equity company, Brightwell Holdings, with the latter confirming to just-auto today (27 January) it had signed a confidentiality agreement with Saab's receivers.

However, reports are circulating Mahindra & Mahindra may be attempting to meet the Swedish receivers although the Indian utility vehicle specialist is keeping its cards close to its chest.

"We have said very clearly we don't comment on speculative stories," a Mahindra & Mahindra spokeswoman told just-auto from India. "We have been asked and we will continue saying that.

"We have seen it ourselves in the media and whenever we have been asked, we have just said we continue to maintain that [no comment]. If there is any news, I will be happy to share it, but there is really nothing, let's wait."

Mahindra's reluctance to comment is in stark contrast to Brightwell Holdings, which, as well as outlining its confidentiality agreement with the Swedish receivers, also revealed this morning it would shortly issue a statement regarding the future of skilled engineers at Saab.

"At the end of the day, Saab will not be the entity we want it to be if we don't have skilled engineers for local production," Brightwell Holdings partner Zamier Ahmed told just-auto.

 "We will make a statement with regards to that in the very near future [when] we have a better picture of the positioning for our proposal.

© 2012 All content copyright just-auto.com.

[Petemate]

I wonder how GM view the possibility of Indian interest?

[Steve McF]

INDIA: Mahindra & Mahindra readying Saab bid - paper

7 February 2012 | By: Graeme Roberts

Mahindra & Mahindra, one of four companies interested in Saab Automobiles, has signed a confidentiality agreement with the bankrupt company and is in the process of finalising its bid, an Indian media report said. China's BAIC, possibly in conjunction with Panasonic reportedly may also submit a bid.

Sources 'close to the deal' told The Times of India M&M would likely complete its bid in the next 15 days while Kotak Mahindra, previously M&M's banker for several big deals, would probably be involved in a Saab deal as well.

Pawan Goenka, M&M's autos and farm equipment sector chief, refused to comment to the paper.

Sources said the M&M team has been working at Saab's Trollhattan factory in Sweden to work out details. They added that top M&M auto and M&A team executives would meet later this week to finalise the structure of the bid.

The biggest hurdle in the revival of Saab under new ownership is proprietary technology in the vehicles which former owner General Motors has refused to transfer under licence to potential new owners.

Sources told the Times GM had made clear it would not give intellectual property rights (IPR) for the [GM Mexico-built] 9-4X and [Sab-made] 9-5 models to any buyer, leading to the failure of an earlier bid by Chinese automaker Zhejiang Youngman Lotus Automobile.

Since then, Youngman has tabled a revised offer of SKR3bn (US$446m) for Saab, according to new reports.

Youngman's revised offer too has not been received with enthusiasm by the Saab receivers, the Indian paper noted.

Sources told the Times M&M is perceived by the receivers as "one of the strongest bidders" thanks to its ability to turn around ailing South Korean company Ssangyong which it bought in 2010 and was this week reported to be considering turning India into a manufacturing base for the automaker.

The Times also noted, as reported by other media in the last 24 hours, that Beijing Automotive Investment (BAIC) has announced an interest in Saab. Some reports said the company is considering a partial bid for Saab, in conjunction with auto battery maker Panasonic, with the aim eventually of making electric vehicles.

© 2012 All content copyright just-auto.com.

The interesting line here is:
"Sources told the Times GM had made clear it would not give intellectual property rights (IPR) for the [GM Mexico-built] 9-4X and [Sab-made] 9-5 models to any buyer, leading to the failure of an earlier bid by Chinese automaker Zhejiang Youngman Lotus Automobile."

I thought it was just GM objecting to a Chinese company getting access to GM IP, but this sounds like they won't support any bid from anyone :-o

[Max Headroom]

Interesting - I heard only this week that Panasonic themselves were in trouble