Spyker makes final payment for Saab
DUTCH carmaker Spyker Cars has used internal funding rather than external debt to pay General Motors the final £15.9m purchase price for Sweden’s Saab, ending concern over how it would foot the bill.
Niche carmaker Spyker, which has never made a profit, took over the larger Saab from GM earlier this year and is now working to revive the flagging brand. The final instalment of the purchase price had been due on 15 July.
Spyker said it made the payment without increasing its external debt or issuing new shares, adding the internal funding became available after the acquisition of Saab Great Britain by Spyker on 31 May.
The firm had said it intended to fund the payment primarily through senior debt and that it had pledged assets to GM as security for the final payment.
“The early payment of the second and last instalment underlines our desire to finalise the transaction with GM as soon as it was possible, enabling management to fully focus on the future of the group,” Spyker Cars Chief Executive Victor Muller said in a statement.
Spyker has spent £265m buying the iconic Swedish brand.