China Evergrande’s EV Unit to Get Cash Injection From Dubai Automaker
market capitalization, which topped the equivalent of $80 billion in April 2021, was $2.4 billion as of Tuesday’s close of trading in Hong Kong. Its shares surged at the market’s open after the company disclosed the new investment but closed just 1.8% up for the day.
The EV business said on Monday that it has also struck an agreement to convert some of its loans into new shares, which would be held by lenders including its parent company and Hui. Evergrande’s stake in the unit will drop to about 47% from 59% currently, after the loan conversion and capital injection from NWTN.
The deal is expected to close in the fourth quarter. Evergrande, once one of China’s biggest home sellers and the world’s most indebted developer, in March struck a debt-restructuring deal covering $19 billion in bonds following lengthy negotiations with international creditors.
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