Gotion High-Tech takes a stake in Ebusco

Dutch bus manufacturer Ebusco will purchase batteries from the Chinese company Gotion. The latter, in which VW also has a stake, will also invest millions in the new partner - to secure its own payment.

According to Ebusco, a corresponding investment agreement was signed over the weekend – specifically between Ebusco, Gotion, Gotion GmbH, a German subsidiary of Gotion, and Peter Bijvelds Holding, the company of founder and former CEO Peter Bijvelds. Under the agreement, Gotion will invest five million euros in a share issue of ‘rump shares’ (i.e. shares underlying unexercised rights), corresponding to 9.3 per cent of the Ebusco shares.

The two partners also stipulated that there could be a separate share issuance for Gotion in 2025 if there are insufficient rump shares available. In that case, an extraordinary general meeting would have to be convened in the first quarter of 2025 to approve the separate share issuance.

The deal is very important for the struggling electric bus manufacturer, but also shows how tense the situation is: according to the announcement, Ebusco will use the proceeds from the Gotion investment to “outstanding accounts payable to Gotion.” With this investment, Gotion thus ensures that the battery order can be paid for – and wants to support not only its own business but also its customer Ebusco. And: Ebusco undertakes (subject to conditions) not to issue any further shares to parties other than Gotion.

With the agreed six-digit investment, Gotion also receives the right to appoint one member each to the Supervisory and Management Board. The Supervisory Board member will also chair the Nomination Committee – subject to the approval of the company’s shareholders, which will be obtained at the Extraordinary General Meeting in 2025.

Ebsuco recorded a loss of over 60 million euros in the first half of the year alone. Although the company has over 1,600 electric buses on its order books, it was only able to deliver 98 vehicles in the first two quarters. Delayed deliveries have already caused Ebusco to lose orders. In September, CEOs Bijvelds and Michiel Peters were dismissed and replaced by the German Christian Schreyer, as the former had failed to achieve an economic turnaround.

ebusco.com