Victor Muller is at his games again even as Saab’s cash crunch continues. He has delayed payments to employees, suppliers, creditors and even the tax-man. The China card seems to be played out. Suppliers who start proceedings for bankruptcy get priority in getting paid. Workers get priority in getting their wages before white-collar employees. The trade unions are desperate and go along with anything as they hope for some miraculous solution. Russian “black” money – which needs to be laundered somewhere – is waiting to swoop through the back-door even if it has been barred entrance through the front-door. My own opinion is that even the initial liquidity crisis was engineered by Victor Muller by shifting cash out of Saab.
He is now engaged in the final desperate end-game at Saab (but of course without risking any of his own personal wealth). The question is whether it is his own end-game or one where he is just a proxy for his Russian masters.
Saab is issuing freshly printed shares at a loss to the U.S. investment fund GEM (Global Yield Fund Limited), which then sell them on at a profit. An arrangement made for the short term to pay salaries and debts. Saab is now selling four million new shares for just under 40 million Swedish kronor. GEM also purchased shares in a new issue on 3rd August – when 5 million new shares were sold in a desperate move to pay the salaries of Saab employees.
Not only are GEM well paid (because they are taking a big risk), they are also diluting the ownership of Saab’s other shareholders. In fact, these 10 million shares conveyed in a short time to GEM represents almost a third of the total shares. GEM acts only as intermediary and who is actually buying is a mystery.
GEM Yield Funds Ltd. buys shares for 90 percent of their value and then sells them on. These shares are then traded in Amsterdam. Using GEM is considered a very expensive way for Saab to raise cash but there are few options left. Issuing just another 10 million new shares could dilute the ownership sufficiently for a single owner of just the new shares to have a majority stake. And that for less than a total of 80 million kronor (about $13 million). Whether production will ever restart is looking increasingly unlikely – at least for Saab in its present form. What would happen to Saab if it ever came fully under the control of Vladimir Antonov is anybody’s guess. I suspect that Saab’s fate would then be connected more to being a money-laundering centre than to the production of quality cars. I would not be in the least surprised to find that the newly issued shares are ending up in Russian hands. The mark-up that GEM charges is probably worthwhile and represents an acceptable discount for the laundering of “funny” money.
Related: Let Saab die with some dignity
The k2p blog 