Property group Agile expands into new energy vehicles with We Solutions

Apollo Future Mobility

09/05/2019 05:36

HONG KONG, May 9 (Reuters) - Guangzhou-based property
developer Agile Group  3383.HK  has made a foray into new energy
vehicles (NEVs), teaming up with electric vehicle technology
provider We Solutions Ltd  0860.HK  to develop cars and build
towns set up for NEVs.
    As part of the partnership, We Solutions said it sold HK$203
million ($26 million) worth of new shares to Agile, giving the
property developer a 5.89 percent stake in the electric vehicle
(EV) technology company's enlarged share base.
    We Solutions, 7.65 percent-owned by one of Asia's richest
men, Li Ka Shing, issued 400 million new shares to Agile at
HK$0.51 per share, a 5.2 percent premium to Wednesday's closing
price, it said in a filing late on Wednesday.
    The two companies plan to research, develop and produce
NEV-related technology in China and jointly develop industry
platforms, featured towns, property and facilities for the
projects, We Solutions said.
    Most of the money it raised from Agile would be used for the
projects, the company said.
    Agile was not immediately available for comment.
    Agile joins its larger peer China Evergrande Group  3333.HK 
in betting on growth in the NEV market.
    Evergrande said in March it aimed to be a big player in the
EV industry potentially worth trillions of yuan. It has invested
around 10 billion yuan ($1.47 billion) in the industry this
year.  urn:newsml:reuters.com:*:nL3N21D10F
    Agile's shares fell 2 percent at midday on Thursday in line
with the broader market  .HSI , while We Solutions shares were
unchanged.     
    
($1 = 7.8480 Hong Kong dollars)
($1 = 6.7954 Chinese yuan renminbi)

 (Reporting by Clare Jim; Editing by Sonali Paul)
 ((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters
Messaging: clare.jim.thomsonreuters.com@reuters.net))