HONG KONG: Shares of China Evergrande New Energy Vehicle Group more than doubled on Monday as trade resumed after the company said liquidators had agreed on behalf of key shareholders to sell a stake in the electric vehicle (EV) maker.
Shares of embattled developer China Evergrande’s EV unit soared as much as 113% to HK$0.81, their highest since September 22, becoming the top gainer on the Hong Kong bourse, and last stood up 79%, following the May 17 trade halt.
The non-binding deal by liquidators acting for China Evergrande Group, Evergrande Health Industry and Acelin Global provides for a third-party buyer to take a stake of 29% in the unit, with an option for 29.5% more, the EV unit said on Sunday.
The three collectively hold 58.5% of the cash-strapped EV unit, whose factory in the northern city of Tianjin stopped production at the start of 2024.
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The EV unit said the term sheet also mentioned that the potential purchaser would provide a line of credit to fund its operation and business development.
Last week, China Evergrande New Energy Vehicle said its unit had received a letter from local administrative bodies demanding repayment of 1.9 billion yuan ($262 million) in subsidies and incentives.
Earlier this year, China Evergrande, the world’s most indebted property developer, was ordered to be liquidated after it was unable to offer a concrete restructuring plan, more than two years after it defaulted on its offshore debt.
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