M&M in race to buy Saab Auto's holding firm: reports

Reports in European media state that M&M is amongst the prospective buyers, but the company has declined to comment

 

National Electric Vehicle Sweden AB, the holding company that purchased assets of Saab Automobile two years ago, has said that it is in talks with two Asian companies for a sell-out, one of which, news reports say, could be Mahindra & Mahindra.

The struggling Swedish company further stated that a letter of intent has been signed with one of the two companies which has agreed to become the majority owner in NEVS. Reports in European media state that Mumbai-based M&M is amongst the prospective buyers, however, M&M has declined to comment.

“As a matter of policy we do not comment on speculation”, a spokesperson at Mahindra & Mahindra said when responding to a questionnaire sent its response on if the company had shown interest in NEVS.

The term sheet stipulates the form for further negotiations, commercial terms for an expected final deal, as well as funding to be paid by the OEM, both through a direct investment in NEVS and during the continuation of the negotiation phase until the deal is closed, NEVS said. 

"I cannot comment on the parties we are negotiating with, due to the present non-disclosure agreements", said a spokesperson of NEVS. The Swedish company which is owned by National Modern Energy Holdings, an Chinese-Japanese energy company having its headquarters in Hong Kong, filed for bankruptcy in August this year.

If a positive decision is given by the board of directors, the OEM player has agreed to provide bridge loans to NEVS with Euro 5 million per month to cover the running costs for a continued organisation until the negotiations have been concluded, NEVS added.

NEVS, which makes cars running on electric motors and internal combustion engines has a licensing agreement with Saab AB allowing it to use the Saab brand name for its future vehicles.