(February 24, 2011) Spyker Cars said today it is negotiating to sell its sports car business to a company controlled by Russian billionaire Vladimir Antonov.

Spyker, which bought Saab from General Motors a year ago, said it has signed a memorandum of understanding to sell Spyker's assets to UK holding company CPP Global Holdings, which is owned by Antonov.

The Dutch supercar maker said proceeds from the 32 million euro sale will be used to reduce Spyker Cars' debt. Fifteen million Euros would be paid immediately upon the finalization of the deal, with the remaining 17 million Euros to be paid over a six year ‘earn-out’ period.

Victor Muller, Spyker Cars CEO and Saab chairman, said the sale will separate the capital structure of Spyker and Saab.

"Without Spyker we would not have been able to acquire Saab Automobile last year but the Spyker business soon became a small fish in a large pond as a result," Muller said in a statement.

Under the deal, Antonov's CPP Global Holdings would purchase virtually all assets related to Spyker's business, including the Spyker trademarks and other intellectual property rights.

Antonov, said: "Having created an enviable portfolio of premium, world-class automotive companies and brands over the past two years with CPP, we are convinced that Spyker will flourish within the CPP Group. We are delighted to be bringing more investment and job opportunities to Coventry, and we hope that this further cements its reputation as the heartland of the automotive industry in the UK.”

Spyker has struggled to make money and analysts say it needs a strategic investor longer term if it is to achieve its stated goal of turning Saab into an independent and profitable niche player.

Source: Spyker Cars, Automotive News