SAAB buyout – Indian carmaker Mahindra not interested anymore while Brightwell Holdings to place a bid soon
Back in December last year, when court decided to end SAAB Auto, the Swedish automaker, investors and car manufacturing companies from around the world took notice. Earlier in January this year, one of the three administrators, overlooking the Saab sellout, revealed that four to five globally reputed companies have shown interest in them. Mr Hans Bergqvist, one of the three SAAB administrators who are looking into selling SAAB, said, “I can’t comment on who we are in discussions with, but we are conducting dialogues with four to five interested parties who we consider are seriously interested. That is our main tack (since) we… will get the most value.”
Of these four to five companies, three are really strong contenders; Chinese automobile manufacturer – Youngman, India’s automobile manufacturer – Mahindra and Mahindra and Turkish private investment firm – Brightwell Holdings. Earlier this month, it was revealed that SAAB has rejected Youngman’s bid worth $450 million, majorly due to GM’s refusal to approve their license to a Chinese car maker. Bloomberg reported earlier today that India’s Mahindra is planning on withdrawing their plan to place a bid for SAAB, reason being that they will not be able to buy Saab license agreement from GM, which is part of the sellout.
On the other hand, Brightwell Holdings is preparing to place a bid for SAAB. Zamier Ahmed from Brightwell Holdings, in an interview, said: “We will place a bid, but we want to do this right. It requires a lot of analysis, and Saab is a huge undertaking.” When asked about the time by which they would like to start production, Mr Ahmed replied, “We want to start as soon as possible. The supply chain is not intact right now, but we will of course ensure that all parts of Saab are working. Our goal in all of our investments that they will come to great success in the end, and in this case, this requires that everyone is happy.”
This entire episode has affected SAAB share prices as well. SAAB has fallen by as much as 16%, which is their worst performance since February 2009. The main reason behind this fall in prices is due to their quarterly orders being cut in half and missing their estimated earnings.