Saab on its way back? New rights issue will to give Saab a quick buck


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Monday, 15 August 2011
Swedish Automobile, the owner of Saab Automobile had made another rights issue, this time on four million shares, the company writes in a statement.

“That way we get money into the company in a timely manner,” says Gunnila Gustav, a spokesperson for Saab Automobile.

The buyer is the investment fund GEM Global Yield Fund Limited, which also purchased the shares at the recent rights issue in early August.

According to reports, the amount of money involved is determined by the average share price over a period of two weeks. When the stock exchange in Amsterdam closed on Friday, the shares of Swedish Automobiles was trading at €1.081. If the value stays at the price, the rights issue would provide approximately Skr37 million.

Swedish Automobile has an agreement with GEM since 2010 to be able to sell shares for €150 million to the company. GEM buy shares for 90 percent of the value and then sell them on.
To enlist the help of the Fund, it is considered as an expensive way for Saab to get money. But at a time when there no body stepping up and money is dry in the company’s account, Saab has no choice but to go the expensive to generate some badly needed cash.
By Team

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