GM confirms deal to sell Saab to Koenigsegg

US auto giant General Motors Co. (GM), which emerged from bankruptcy protection last month, has confirmed its deal with Sweden's high-performance sports car maker Koenigsegg Group AB to sell its Saab unit, which would breathe a new life into the ailing automaker and secure its future. 

GM yesterday said in a press release that it has signed a stock purchase agreement with Koenigsegg Group AB regarding the sale of 100 per cent of the shares of Saab Automobile AB.

The agreement follows a preliminary deal reached two months ago between GM and Koenigsegg, for the troubled GM unit which filed for bankruptcy protection in February under the Swedish law. (See: General Motors to sell Saab to Sweden's Koenigsegg)

Saab is expected to come out of legal reorganisation shortly, as the current reconstruction period ends on Thursday, 20 August 2009.

Angelholm-based Koenigsegg Group AB is a consortium of private investors including Koenigsegg Automotive AB which manufactures $1.2 million super sports cars.

The closing conditions of the sale deal include funding commitments with Swedish government support and guarantees, as well as transitional assistance from GM, as Saab becomes independent.