General Motors (GM) Tuesday finalized a $500 million sales deal with the Netherlands-based Spyker Cars NV for its Saab division; thereby moving step closer to the fulfillment of the CEO Ed Whitacre’s assurance that the company would pay back the US and Canadian taxpayers by June this year.

As per the terms of the binding deal, Spyker will pay GM $74 million in cash and $326 million in preferred shares for Saab, which is on the verge of becoming the first GM brand to be sold ever since its July 10 emergence from a US-backed bankruptcy. The offer will correspond to less than 1 percent of the voting rights.

Furthermore, John Smith, VP of planning and alliances at GM, said that GM will also receive some “additional consideration” from the Saab transaction about which GM was advised by Deutsche Bank. GM will also keep $100 million of Saab’s current liquidity.

The GM-Spyker deal is subject to governmental approvals, and will likely to close in mid-February. The deal will give the Detroit-based GM some much-needed cash and help the automaker focus on the four US brands that it will still retain.

Talking about the deal, Spyker CEO Victor Muller said in a statement: “We are very much looking forward to being part of the next chapter in Saab's illustrious history. Saab is an iconic brand that we are honored to shepherd.”