Evergrande EV unit seeks $26b in share sale

Business | Avery Chen 25 Jan 2021

China Evergrande New Energy Vehicle (0708) plans to raise HK$26 billion through a share placement to fund its electric car business and repay debt.

The electric vehicle unit of indebted developer China Evergrande (3333) said it will issue 952.38 million shares, representing around 9.75 percent of the number of enlarged shares, to six investors. The placed shares are priced at HK$27.3 each, a discount of about 9 percent to Friday closing price.

Kimbee Chan Hoi-wan, wife of billionaire Joseph Lau Luen-hung and an executive director of Chinese Estates (0127), and China Gas (0384) chairman Liu Minghui will each buy HK$3 billion worth of shares, or a 1.125 percent stake, respectively.

Chen Hua, founder and chairman of Kingkey Group, Wong Kwong-miu, chairman of Centralcon Properties, Wang Zhongming, chairman of Shenzhen Greenwoods Investment, and Wang Kaiguo, a block trade and private equity investor, will each buy HK$5 billion of shares, or a 1.875 percent stake respectively.

Each investor has agreed to a 12-month lock-up period in respect of the subscription shares, China Evergrande New Energy Vehicle said.

The company said it intends to use the net proceeds to invest in technology research and development and production of its new energy vehicle business, repay indebtedness and for general corporate purposes.

China Evergrande New Energy Vehicle placed 176 million shares for nearly HK$4 billion in September 2020.

China Evergrande's stakes in the unit will be lowered to 67.64 percent.



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