Evergrande NEV extends lifeline with new investor
According to a Bloomberg report, the unnamed investor is said to want to acquire an initial 29 per cent stake in the electric car manufacturer. The deal, which still requires careful examination, is also said to include an option to purchase a further 29.5 per cent of the shares at a later date. With 58.5 per cent, the investor would then hold a majority stake in the company.
This agreement should also include a possible credit line, but this will probably have to be agreed upon by the buyer with the banks. These funds will be used to support the restart of production.
Evergrande NEV has been in financial difficulties for some time, as the parent company Evergrande from the property sector got caught up in the Chinese property crisis or helped trigger it. But not everything has gone smoothly at the electric car subsidiary either, as the president of Evergrande NEV has been under investigation since January.
Evergrande NEV was launched as an electric car project by the Chinese property group Evergrande with great ambitions. When pre-sales of the Hengchi 5 began in July 2022, it was said that the first 10,000 vehicles would be completed by the first quarter of 2023. However, series production was suspended at the end of 2022 due to a lack of new orders. Only 1,700 Hengchi electric cars were built by the end of 2023.
Just a few days ago, there was good news from another Chinese electric car manufacturer with money worries: An investor from Hong Kong has promised HiPhi, the electric car subsidiary of Human Horizon, up to one billion dollars to finance the restructuring and the restart of production.
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