China Evergrande's EV unit to sell 20 percent stake in Swedish firm for tax needs

China Evergrande Group's (3333) electric vehicle unit said on Tuesday it agreed to sell its 20 percent stake in a Sweden-based real estate property lessor for 60 million krona (HK$43.78 million).

The stake sale in AB Trollhättan Propellern 13 will help China Evergrande New Energy Vehicle Group (0708), meet its imminent tax payment needs and other payment obligations.

The company forecast a total disposal loss of 23.8 million krona upon completion of the sale to Logistikfastigheter i Trollhättan AB.

China Evergrande Group is the world's most heavily indebted property developer with over US$300 billion (HK$2.34 trillion) in liabilities, and was ordered into liquidation by a Hong Kong court in January last year following its offshore debt default in late 2021.

China Evergrande New Energy Vehicle Group had initially planned to compete with Tesla and even held a market valuation surpassing that of Ford Motor, but has since become entangled in the debt crisis affecting its parent company.

REUTERS