The share sale plan between China Evergrande New Energy Vehicle Group, the electric-vehicle subsidiary of the beleaguered property developer China Evergrande, and U.S.-listed NWTN, has been abruptly halted. The announcement was made through a Hong Kong stock exchange filing on Sunday, adding yet another layer of uncertainty to Evergrande’s tumultuous financial situation.
The decision to suspend the share subscription deal was attributed to the “significant uncertainties” surrounding the larger Evergrande conglomerate, as stated in the filing by the Chinese company. This latest setback comes on the heels of ongoing investigations against the parent company, its founder, and senior executives, casting a cloud of uncertainty over Evergrande’s future.
The electric-vehicle subsidiary, back in August, had revealed its intention to issue a staggering 6.18 billion new shares to Dubai-based mobility company NWTN, with a total consideration of HKD 3.89 billion (equivalent to USD 496.72 million). This implied a subscription price of HKD 0.6297 per share, reflecting the ambitious nature of the proposed deal.
As a result of this halt, trading in shares of China Evergrande New Energy Vehicle Group, which had been suspended since September 28, is set to resume on Monday, according to the Sunday filing. This resumption will likely be met with keen interest from investors and market observers eager to gauge the impact of Evergrande’s ongoing financial troubles on its electric vehicle arm.
The suspension of this share sale plan underscores the broader challenges facing Evergrande, which has been grappling with a debt restructuring crisis and a slew of investigations.
