The shares of Shanghai-listed, Chinese car distributor company, Pang Da Automobile Trade surged on Tuesday after the company revealed its new plan to acquire stake in Swedish automaker, Saab. The Swedish automaker is going through a struggling phase and the new deal is expected to improve its condition.
On Monday, Pang Da made an announcement in a filing with the Shanghai Stock Exchange that it will buy a 24% stake in Saab's Dutch owner Spyker for around 65 million Euros. The company will also buy Saab-branded cars worth 45 million Euros.
The company said that the purchase of stake in Spyker is subject to approval from Dutch government agencies.
Pang Da sells 20 car brands including vehicles from Toyota Motor Corp. and Volkswagen AG’s Audi division. The company has raised about 6 billion Yuan in an initial public offering in April. It has sold 470,000 vehicles last year from 926 outlets across China with a net profit of 1.2 billion Yuan.
The shares of Pang Da increased 3.44% and were traded at 35.17 Yuan in the benchmark Shanghai Composite Index.
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