Say what? Spyker Cars to sell sports car division, focus on Saab
In a move that will certainly leave many shaking or scratching their heads, Spyker Cars announced today that it will sell its sports car assets to focus on Saab.
Saab exists because of the niche sportscar maker Spyker and its decision to buy the otherwise dead automaker from General Motors, but in an interesting turn, the company that operates both Spyker and Saab has started the process to sell off its Spyker cars division.
The Dutch automaker announced today that it has already signed a Memorandum of Understanding to sell the assets of its Spyker sportscar business to a private U.K. company, CPP Global Holdings Limited, which happens to be owned by Vladimir Antonov.
To anyone that follows Spyker closely, you may recognize Antonov's name, as the investor once owned 29.9 percent of Spyker prior to Spyker Cars purchasing Saab, but was forced to sell his stake when GM refused to ink its deal to sell Saab without the move.
The new deal calls for a 15 million Euro purchase price for the sportscar assets, as well as a 17 million Euro earn-out, with all of the proceeds to go towards the reduction of Spyker Cars' debt. Should the sale go through, the company still responsible for Saab Automotive is expected to change its name and focus entirely on reducing debt and increasing market share and profitability for the automaker.
"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," said Hans Hugenholtz, chairman of the supervisory board of Spyker Cars.
Regarding the interesting swapping of roles of Spyker and Saab, Spyker Cars CEO Victor Muller 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."
The terms of the deal are not yet completely finalized, but it appears that short of unforeseen circumstances, the deal will likely go through.