Evergrande Health Industry Group Limited, an arm of property developer China Evergrande Group, has acquired 45 per cent stake in Faraday Future, the new-energy vehicle startup founded by Jia Yueting whose conglomerate LeEco is battling a severe cash crunch.
Evergrande Health has come in as a strategic investor after buying out the 45 per cent stake held by HK-based Season Smart Ltd, which had, in November 2017, agreed to invest $2 billion in the auto startup, according to a company release.
So far, Season Smart has paid $800 million towards its investment. Evergrande Health has paid a sum of HKD 6.746 billion ($859.6 million) for the stake and will be required to pay the balance amount.
The share sales and purchase agreement was signed on June 25, according to the Hong Kong Stock Exchange filing.
The deal comes after parent China Evergrande in April said it would invest $16 billion in high-tech sectors.
Founded in May 2014 in the U.S., the Faraday Future team has close to 1,400 employees and has been granted about 380 patents in the U.S and China, covering battery, powertrain and electric control system, autonomous driving, automotive connectivity
“The investment will also support FF to expand its product pipeline, develop cutting-edge technologies and grow the business rapidly in the global marketplace, including manufacturing facilities in Hanford, California and in Guangzhou Nansha, Guangdong Province, China,” as per the company announcement.
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