China Evergrande's EV unit to cease discussions for stake sale (updated)

China Evergrande New Energy Vehicle

25/10/2024 15:24

(Adds details and context from paragraph 2)
       Oct 25 (Reuters) - China Evergrande New Energy Vehicle
 0708.HK  said on Friday that its potential sellers have decided
to cease talks for a stake sale in the company, which is the
electric vehicle unit of the debt-laden China Evergrande
 3333.HK . 
    In May, liquidators of the parent company - which held 58.5%
in the EV unit - said they were talking to a third-party buyer
to sell a 29% stake in the EV group, with an option to sell the
rest of the holding within a certain period of time.
    China Evergrande - in a separate statement - said on Friday
that its liquidators will continue to seek possible buyers and
other opportunities to divest the shares in Evergrande NEV, but
also flagged that it is not certain that such a transaction will
take place.   
     Evergrande NEV posted a net loss of 20.3 billion yuan ($2.9
billion) in the first half, widening from a 6.9 billion net loss
a year earlier.
     The company said an application has been made for the
resumption of trading in shares on stock exchange from Oct. 28. 

 (Reporting by Archishma Iyer in Bengaluru and Clare Jim in Hong
Kong; Editing by Mrigank Dhaniwala)
 ((Archishma.Iyer@thomsonreuters.com;))