Evergrande EV unit suspends talks with Dubai's NWTN on redrafting deal (updated)

Robo.ai

02/02/2024 15:43

(Adds details on deal with NWTN)
       Feb 2 (Reuters) - China Evergrande New Energy Vehicle
 0708.HK  (NEV) said on Friday it has suspended negotiations on
amendments to the terms of a HK$3.89-billion ($497.42 million)
share subscription agreement with Dubai-based mobility firm NWTN
 NWTN.O .
   In August, the electric vehicle unit of China Evergrande had
agreed to issue 6.18 billion new shares to NWTN to support its
parent's restructuring plan.
       If the transaction had been completed, NWTN would have
held a 27.50% stake in NEV, while China Evergrande's interest
would have been diluted to 46.86%.
  
       NEV said if it decides to proceed with the subscription
deal with NWTN, the parties will renegotiate the amendments to
certain key terms. 
  
       The parties "are still considering whether the Proposed
transactions will proceed, and have yet to form a definitive
view", the EV unit said. 
  
   The announcement comes days after China Evergrande, the
world's most indebted property developer, was ordered to be
liquidated after it was unable to offer a concrete restructuring
plan. This was more than two years after it defaulted on its
offshore debt and follows several court hearings.
        
  
($1 = 7.8198 Hong Kong dollars)

 (Reporting by Echha Jain and Poonam Behura in Bengaluru;
Editing by Pooja Desai)
 ((Echha.Jain@thomsonreuters.com))