EGRNF - UAE-based auto maker NWTN acquires 25.7% stake in China Evergrande's EV unit for $500M

2023-08-14 11:18:34 ET

UAE-based electric car maker NWTN Inc. ( NASDAQ: NWTN ) Monday announced a strategic investment of $500 million to acquire a 27.50% stake in embattled property developer China Evergrande's Hong Kong-listed electric vehicle subsidiary.

The deal signed between NWTN and China Evergrande New Energy Vehicle ( OTC:EVGRF ) also allowed NWTN the right to nominate a majority of EVGRF's board.

"By helping to address EVGRF's near-term capital needs and partner in expanding its market overseas, the Company believes EVGRF can be instrumental in addressing the EV needs of the Middle East," said the company.

The transaction, expected to close in the fourth quarter, is subject to certain conditions, including confirmation of a debt repayment plan by certain creditors of EVGRF and the progression of China Evergrande's debt restructuring plan , among others.

World's most indebted property developer with over $300 billion in dues, China Evergrande has been at the center of China's cooling property sector, a major pillar of the world's second-largest economy, which has seen many property developers defaulting on their obligations and restructuring their debt.

China Evergrande New Energy Vehicle produced more than 1,000 units, in aggregate, of its flagship Hengchi 5 by the end of May since production began at its Tianjin Plant in China in September 2022.

NWTN -0.0% after hours to $9.75

Source: Press Release

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