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BREAKING NEWS: OEM signs letter of intent to purchase majority stake in NEVS

December 1, 2014 in News

On November 30th one of the OEM’s currently in negotiation with NEVS, which our sources claim would be Mahindra from India has signed a Term Sheet in which the OEM states that it is willing to step in as majority owner in NEVS AB.

The intention is for NEVS to issue new shares and that Mahindra (unconfirmed) is to purchase enough shares to gain a majority stake hold in NEVS AB.

Due to the secrecy agreement between NEVS and the other partners NEVS refuses to confirm that this is Mahindra.

The Term Sheet specifies the details on how negotiations are to be conducted until finalization of the deal. The finalization of the deal also calls for a direct investment into NEVS by the new majority shareholder, the new shareholder (Mahindra) will also conduct a new due diligence which will act as a complement to the one already conducted.

If a positive outcome is achieved with the board of Mahindra that this deal should be continued to finalization, a bridge loan of 5 million Euros per month is to be paid out to NEVS in order to cover the running costs of the company during the reconstruction and until a finalization of the purchase which should be achieved in February of 2015.

Talks with the other OEM partner (rumored to be DongFeng) is also continuing and until a finalized deal on a Joint Venture can be achieved with this partner, both parties are now preparing a development contract in which NEVS will work to develop technical solutions for this Chinese partner. These contracts will be pre-paid by the Chinese with the intention that this development will evolve to a joint venture later on. This way the partnership can be engaged on a short time-frame while negotiations continue. This deal will also support the continuation of the reconstruction.

NEVS has also continued with its plan be and established a system called NEVS Industrial Services in which NEVS is offering solutions to other companies, several interested parties have entered into talks with NEVS and some offers have been made but no firm deals have yet been signed.

There is also a backside to these good news and it is that the creditors are most likely assumed to cut their claims towards NEVS if a deal is to be finalized, if and how big the cut is to be is not yet discussed but it should be to such a matter that if a claim is below a certain amount, that amount would be repaid in full.

The MOST IMPORTANT part in the document released by NEVS comes last, and that is that the Creditor Committee which is a selected group of the creditors have agreed that this is cause for continued support for NEVS reconstruction. This shows that NEVS have the creditors on their side, whats left is to convince the court.

According to other unconfirmed sources to SU, Mahindra is also talking directly to SAAB AB regarding usage of the brand name.

Read the full report from NEVS here:

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Have you seen the vehicles Mahindra and Mahindra produce? Ancient Jeeps, like WW2 era with equally ancient engines. Cars and trucks that look as if you were to explain how to produce a car to a blind person and let them have at it. I get that they do many other things, and likely would not further damage SAAB, but boy do they make total ****-tastic cars and trucks. However, they are one of the largest companies in all of India, hope it works out, as I would like to have a chance to buy a brand new SAAB some day.
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