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Spyker Going All In On Saab, Sells Sports Car Business

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On: Mon, Feb 28, 2011 at 5:56PM | By: Chris Weiss


Spyker Going All In On Saab, Sells Sports Car Business

The odd Spyker/Saab saga continues. I always found the idea of a small supercar manufacturer purchasing an established brand to be rather counterintuitive: usually it's the large brand name purchasing the supercar maker (VW and Bugatti/Lamborghini, Fiat and Ferrari, and so on and so on). But the deal worked out, with Spyker saving Saab from extinction with a beyond-last-minute deal with GM last January. And things seem to be coming along quite nicely over in northern Europe, so nicely, in fact, that Spyker has abandoned its supercar business to focus on its new bread and butter.

Spyker signed a memorandum of understanding with CPP Global Holdings, a British coachbuilding outfit that has manufactured the Spyker C8 Aileron since fall of 2009. The memorandum is for a €32 million sale between Spyker and CPP, which would include €15 million up front and the remainder paid off over six years.

While the sale is somewhat surprising, it should be good news for Spyker fans. CPP says that it plans to expand the range beyond the C8 Aileron.

Brendan O’Toole, managing director of CPP, said: "The management of CPP is very excited about the acquisition of the Spyker sports car business, and the brand is entering a period of major development. We have well-developed plans to expand the product range further, and the future of the Spyker brand is incredibly exciting.”

Meanwhile, Spyker will focus all its energy and resources into revitalizing Saab. Following Spyker's January 2010 purchase of Saab, assembly lines began running in Trollhattan, Sweden last March. The factory is producing the 9-5 sedan, and will start production on the 9-5 SportCombi later this year. U.S. market launch for the SportCombi is scheduled for this summer.

Saab will debut the production SportCombi at the Geneva Motor Show, and will also show a three-door hatch concept.


Press Release: Spyker Cars to sell Spyker Cars

February 24, 2011

SPYKER CARS N.V. IN NEGOTIATIONS TO SELL THE SPYKER SPORTSCAR BUSINESS IN ORDER TO FOCUS ON SAAB AUTOMOBILE

  • Spyker Cars N.V.– the EURONEXT-listed holding company which operates the Spyker and Saab Automobile premium car brands – has signed a Memorandum of Understanding to sell the assets of its Spyker sportscar business (the “Spyker Business”) to a private UK holding company, CPP Global Holdings Limited, which is owned by Vladimir Antonov.
  • Indicative terms include a purchase price of 15 million Euros plus a 17 million Euros earn-out. The proceeds will be used to reduce Spyker Cars N.V.’s debt.
    Within 6 months of completion of the sale and subject to certain conditions, it is envisaged that Tenaci Capital B.V. would convert the 9.5 million Euro Convertible Loan at 3.75 Euros per share and 7.5 million Euros of its loans at 5.50 Euros per share to further reduce debt and interest.
  • This transaction would allow Spyker Cars N.V., which will change its name shortly, to exclusively focus on the Saab Automobile business while reducing debt and improving operating results through reduced interest expenses and removing the operating losses related to the Spyker Business.

Zeewolde, The Netherlands, 24 February 2011 – Spyker Cars N.V. has signed a Memorandum of Understanding with CPP Global Holdings Limited, a UK-based company owned by Vladimir Antonov, concerning a potential sale of the Spyker sportscar business.

The transaction would be structured as an asset purchase of virtually all assets related to the Spyker Business, including the Spyker trademarks and other intellectual property rights, and would be subject to several conditions precedent, including the outcome of Purchaser’s due diligence.

If completed, the proceeds of the purchase price will be used to reduce Spyker Cars N.V. indebtedness to Tenaci Capital B.V., an investment company controlled by Spyker Cars N.V. CEO, Victor Muller, thereby reducing its interest burden going forward. The indicative purchase price would consist of two elements: 15 million Euros due on closing and a maximum of 17 million Euros payable in instalments over the period 2011-2016 from the Spyker Business’ Earnings Before Taxes.

To further reduce Spyker Cars N.V.’s debt, it is envisaged that within 6 months of completion of the sale Tenaci Capital B.V. would convert its Convertible Loan for the amount of 9.5 million Euros at 3.75 Euro per share as well as convert an additional amount of 7.5 million Euros at 5.50 Euros per share subject to completion of the sale and certain conditions.

Hans Hugenholtz, Chairman of the Supervisory Board of Spyker Cars N.V., said: “This transaction will allow Spyker Cars N.V. to focus on the Saab Automobile business exclusively, will eliminate the requirement for us to make further capital investment in the Spyker Business, and will reduce our debt.

“The Spyker Business will benefit from a focused and independent management team to progress the business from a commercial and technological point of view. Victor Muller will continue as CEO of the Spyker Business until a successor is appointed, at which time he will become its non-executive chairman. Mr. Muller remains fully engaged as CEO of Spyker Cars N.V. and Chairman of the Board of Saab Automobile AB.

Victor Muller, CEO of Spyker Cars N.V. and Chairman of the Board of Saab Automobile AB, said: “Without Spyker we would not have been able to acquire Saab Automobile last year but the Spyker Business soon became a small fish in a large pond as a result. In terms of the overall results of Spyker Cars N.V., the Spyker Business had become immaterial, but to develop its business going forward, its cash needs are relatively significant. Therefore the decision to separate the Spyker Business and Saab Automobile from a capital structure point of view is a good one.”

Vladimir Antonov, chairman of Convers Group said: “Having created an automotive portfolio over the past two years consisting of premium, world-class companies and brands, we are convinced that Spyker will flourish within the CPP Group and become profitable as planned.”




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