China Evergrande NEV shares jump on $3.2 bln plan to lower debt (updated)

Robo.ai

15/08/2023 07:47

(Recasts, updates shares, adds details)
       BEIJING/HONG KONG, Aug 15 (Reuters) - China Evergrande
New Energy Vehicle Group (NEV)  0708.HK  shares jumped nearly
50% on Tuesday after the electric vehicle unit of cash-strapped
property firm China Evergrande Group  3333.HK  announced a $3.2
billion plan to repay debt and stay afloat.
    The plan unveiled late on Monday includes a deal to raise
nearly $500 million from Dubai-based mobility firm NWTN
 NWTN.O , which will own about a 27.5% stake in NEV in return.
    The overall package also includes a debt-for-equity swap of
HK$20.89 billion ($2.67 billion) involving China Evergrande, its
founder Hui Ka Yan, and his unit Xin Xin (BVI) Ltd, among others
converting loans to shares, NEV said.
    After the deal is completed, China Evergrande's stake in the
unit will be diluted to 46.86%.
        Shares in NEV jumped as much as 47% before paring down
its gain to 16%. 
($1 = 7.8216 Hong Kong dollars)

 (Reporting by Roxanne Liu in Beijing and Clare Jim in Hong
Kong; Editing by Miyoung Kim and Jamie Freed)
 ((clare.jim@thomsonreuters.com;))