Evergrande’s US$500 million EV share deal suspended, stock to resume trading

HONG KONG: A share sale plan between China Evergrande New Energy Vehicle Group, the electric-vehicle arm of embattled property developer China Evergrande and US-listed NWTN has been halted, according to a Hong Kong bourse stock filing on Sunday (Oct 8).

The suspension of the share subscription deal was due to “significant uncertainties” tied to the Evergrande group, the filing by the Chinese firm said.

Previously, Evergrande said investigations had been initiated against the parent company, its founder and senior executives, while the firm’s debt restructuring plan has also been derailed.

In an announcement in August, the electric-vehicle subsidiary said it had agreed to issue 6.18 billion new shares to Dubai-based mobility company NWTN for a total consideration of HK$3.89 billion (US$496.72 million), implying a subscription price of HK$0.6297 per share.

Trading in shares of the China Evergrande New Energy Vehicle Group, which were suspended on Sep 28, will resume on Monday, the Sunday filing said.