Youth Cars to Acquire Equity of Spyker 30% to Develop New Car with Saab Technology

China Zhejiang Youth Automotive Group and the Dutch sports car manufacturer Spyker signed a framework agreement. Young people will acquire a 29.9% stake in Spyker. The two parties will set up two joint venture subsidiaries to use the original Sauber subsidiary Saab technology to develop new cars.

Youth Auto's acquisition of Spyker's nearly 30% stake According to the official announcement of the two companies, Young Motors completed an asset review of Spyker and signed a final transaction document. According to the terms of the agreement, young people will invest 10 million euros in Spyker to acquire the latter. Equity and provide shareholder loans.

Nearly 6.7 million euros will be used as subscription funds for Spyker A shares, and the remaining 3.3 million euros will be provided to Spyker as a shareholder loan. On the basis of complete dilution, with a price of 0.05 euros per share for Spyker shares, the 6.7 million euro subscription will account for 29.9% of Spyker's existing shares. However, both parties agreed that the youth car will hold no more than 29.9% stake in Spyker and young people do not intend to make a mandatory offer for all existing shares of Spyker.

According to the agreement, from now on, the youth car should pay Spyker a total of €2.3 million in the first installment of the subscription shares within 7 days. After the execution of the final transaction document takes effect, the youth car should pay the remaining 7.7 million euros in the money no later than 45 days.

The establishment of two joint venture subsidiaries, the use of Saab technology to build new cars for youth cars and Spyker sports car in the agreement announced that it will set up two joint venture subsidiaries, to create high-performance sports cars around Saab's Phoenix platform technology.

The first joint venture subsidiary was named Spyker P2P B. V. (Spyker P2P), Young Motors will invest 25 million euros, holding a 75% stake in Spyker P2P, Spyker will hold Spyker P2P B. V. 25% of the shares. Spyker transferred the technology of Spyker D8 Peking-to-Paris (also known as SSUV) and Spyker's trademark to the joint venture subsidiary. Youth Automotive will pay for the investment in installments according to the progress of production and development of the SSUV.

The second joint venture company name is Spyker Phoenix B. V. (Spyker Phoenix), where the young car will hold 80% of the shares, and Spyker shares 20%, its equity will be exempt from dilution. Spyker Phoenix will develop and manufacture a full range of high-end models based on the Phoenix platform. Its specifications will be higher than those of similar Saab models. The new vehicles will also have the features of Saab and Spyker products.

According to the specific circumstances, Spyker Phoenix's new car may be put into production in Europe and China, but according to Spyker CEO Victor Muller, it may not be possible within the next year or two. Both Young and Spyker agreed to provide Spyker Phoenix with free access to all automotive development and manufacturing technologies they own.

Muller said: "Since we failed to transfer Saab Automobile Co., Ltd. smoothly in December 2011, we have been seeking to expand the cooperation relationship between the two parties and use their own tangible or intangible assets with the right to dispose, so as to benefit both parties. With this framework agreement, the partnerships established by Youth and Spyker Automotive in Saab's automotive business will be further consolidated. We are very clear about how we should shape the future vision of Spyker."

Pang Young, chairman of the Youth Car said: “We have always considered it worthwhile to pursue cooperation with Spyker, even after both sides lost the opportunity to reorganize Saab due to unfair factors. However, we saved Saab’s technology. Under the agreement, Our original ideas for the Saab brand will take shape. We are very excited to further help Spyker to develop new vehicles such as the SSUV and to build new cars based on Saab's Phoenix platform technology in China and elsewhere."