Fund fears hit Evergrande unit

Himo Liu

China Evergrande New Energy Vehicle (0708) announced that it had received a letter from NWTN, stating that the share subscriber had temporarily suspended the fulfillment of relevant obligations outlined in the share subscription agreement.

In August, Evergrande Auto secured a US$500 million (HK$3.9 billion) investment from the Dubai-based electric vehicle company NWTN.

The suspension was attributed to Evergrande Vehicle's trading halt, coupled with recent significant changes at China Evergrande Group (3333), resulting in substantial uncertainty that also impacts the share subscription agreement and the proposed transaction.

Furthermore, due to the prevailing circumstances preventing the satisfaction of conditions precedent outlined in the share subscription agreement, NWTN (Zhejiang) Automobile, as the fund provider, is temporarily exempt from providing the second and third tranches of the transitional support amount to Evergrande Vehicle.

In response, Evergrande indicated its readiness to negotiate the adjustments necessary for the proposed transactions.

The company has requested the resumption of trading in its shares, effective today.