China Evergrande's EV unit suspends $500 million share subscription deal, stock to resume trading

livemint.com:

China Evergrande seeks to resume trading amid probe In an announcement made in August, the EV subsidiary stated its agreement to issue 6.18 billion new shares to the Dubai-based mobility company NWTN. The total consideration for this was HK$3.89 billion ($496.72 million), indicating a subscription price of HK$0.6297 per share. According to the filing on Sunday, trading in shares of the China Evergrande New Energy Vehicle Group, which had been suspended on September 28, is set to resume on Monday - October 9.

Previously, Evergrande had reported the initiation of investigations against the parent company, its founder, and senior executives. Trading for the group had been halted last after its billionaire founder, Chairman Hui Ka Yan is under "mandatory measures" linked to "suspicion of illegal crimes". Also Read: China property crisis: Know about rise and fall of Evergrande Founder Hui Ka Yan | Explainer Simultaneously, the debt restructuring plan of the firm has faced setbacks.

The distressed property group stated that there is no other relevant information requiring disclosure. According to a Wall Street Journal report, citing unnamed sources, Chinese authorities are investigating whether Hui tried to transfer assets offshore while the company was grappling with incomplete projects. Evergrande is positioned at the core of a prolonged property crisis, adversely impacting the Chinese economy and diminishing confidence in the housing market.