BEIJING – China’s Hawtai Motor Group Co., Ltd. (Hawtai) have signed a strategic partnership agreement Spyker Cars N.V. and Saab Automobile AB on May 3, according to media sources.
Spyker intends to enter into a subscription agreement with Hawtai in the amount of €120 million ($17.9 million) for a total of 24.6 million shares as well as a €30m convertible loan.
The agreement also encompasses a partnership between Hawtai, Spyker and Saab Automobile with respect to manufacturing, technology and distribution in China.
Hawtai’s investment of €120m will be in return for a maximum of a 29.9 percent equity stake in Spyker on a fully diluted basis. The remaining €30 million will be in the form of a convertible loan agreement with a six-month maturity, an interest rate of 7 percent per annum and a conversion price of €4.88 per share.
The transactions are subject to agreement on definitive transaction documents and certain conditions, which include consents from certain Chinese governmental agencies, the European Investment Bank and the Swedish National Debt Office.
As part of the transaction, Tenaci Capital will convert €42 million of its current loan to Spyker into share capital in Spyker at €4.88 per share, thereby substantially reducing Spyker’s interest burden.
Founded in 2010, the Beijing-based automaker Hawtai currently has an annual production capacity of 350,000 vehicles, 300,000 clean diesel engines and 450,000 automatic transmissions. In 2002, the company commenced building the Terracan and Santa Fe SUVs under its own brand using technology licensed from Hyundai. By 2015, the Chinese automaker aims to have raised capacity to 1 million vehicles, 1 million engines and 1 million automatic transmissions.