News summary
Evergrande Automobile announcedpeacockbass，31peacockbass.45 million shares and 3.203 billion shares will be acquired, accounting for approximately 58.5% of the issued shares. The company will apply for shares to resume trading starting from May 27. Potential buyers will provide credit support to maintain the Group's electric vehicle business. Evergrande Motor is facing a shortage of funds and its Tianjin factory has been suspended. Previously, the strategic investment of Evergrande Automobile and Newton Group failed, with a loss of 11.995 billion yuan in 2023.
Newsletter text
[Evergrande Automobile announced a major equity change, with 3.145 billion shares and 3.203 billion shares to be acquired]
Evergrande Motor issued an announcement on the evening of May 26, announcing that 3.145 billion potential shares for sale (29.0% of the issued shares) will be acquired immediately, while 3.203 billion shares (29.5%) will become options for potential buyers. The company plans to resume trading of shares on the Stock Exchange from 9 a.m. on May 27.
It is reported that the joint and individual liquidators of Evergrande Automobile have signed terms and conditions with China Evergrande Group, Evergrande Health Industry Group and Acelin Global Limited (collectively referred to as potential sellers) and an independent third-party buyer, which may reach a final agreement on the purchase and sale of shares.
In addition, potential buyers or their designees will provide credit lines to Evergrande Automobile to support the continued operation and development of its electric vehicle business. At present, Evergrande Motors faces a serious funding shortage problem, and its Tianjin factory has stopped production since the beginning of the year.
It is worth noting that Evergrande Motor announced on May 22 that its subsidiaries were required to cancel cooperation agreements with local governments and refund approximately 1.9 billion yuan in rewards and subsidies.
The market continues to pay attention to the situation of Evergrande Automobile. In April this year, Evergrande Motor announced that Newton Group's strategic investment had failed. The company has stated that after obtaining strategic investment, it will promote the annual version and modification of Hengchi 5, the development, verification and mass production of Hengchi 6 and Hengchi 7, and develop new platforms and new models based on market demand.
According to Evergrande Motor's 2023 full-year report, the company's turnover reached 1.340.15 billion yuan, a year-on-year increase of 900.04%, mainly due to the growth in sales of automobiles and auto parts. However, during the reporting period, the company's loss reached 11.995 billion yuan. As of the suspension, Evergrande Motor's total market value was HK$4.121 billion.