Currently reading: Saab sells shares to pay workers

Saab will sell some of its shares to raise enough cash to pay its workers

The owner of ailing Saab brand Swedish Automobile has announced that it will issue new shares to raise funds to pay its workers.

Last week the firm was unable to pay its white-collar workers because funds due to come from investors were not paid in time.

Read about Saab's failure to pay its workers wages

Investment company GEM Global Yield Fund will purchase around five million of Saab’s new shares, giving it a 17 per cent stake in the company.

Analysts predict, however, that this deal will only raise up to seven million euros, some way short of the 50 million Saab needs to resume production.

A Saab spokesperson commented: “We believe we'll be able to pay the wages this week, but before we have the money on our account we're a bit careful."

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