Evergrande's $500 mln EV share deal suspended, stock to resume trading

Robo.ai

08/10/2023 12:18

HONG KONG, Oct 8 (Reuters) - A share sale plan between
China Evergrande New Energy Vehicle Group  0708.HK , the
electric-vehicle arm of embattled property developer China
Evergrande  3333.HK  and U.S.-listed NWTN  NWTN.O  has been
halted, according to a Hong Kong bourse stock filing on Sunday.
    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 ($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 Sept. 28, will resume on Monday,
the Sunday filing said.
($1 = 7.8313 Hong Kong dollars)

 (Reporting by Xie Yu;Editing by Elaine Hardcastle)
 ((Yu.Xie@thomsonreuters.com;))