Active Stocks
Sat May 18 2024 12:49:03
  1. Tata Motors share price
  2. 952.95 0.76%
  1. Power Grid Corporation Of India share price
  2. 316.85 1.12%
  1. Tata Steel share price
  2. 167.90 0.39%
  1. ITC share price
  2. 436.50 -0.02%
  1. State Bank Of India share price
  2. 821.30 0.42%
Business News/ Companies / China Evergrande's EV unit suspends $500 million share subscription deal, stock to resume trading
BackBack

China Evergrande's EV unit suspends $500 million share subscription deal, stock to resume trading

The Chinese company stated in the filing that the suspension of the share subscription deal was a result of significant uncertainties linked to the Evergrande group

In an announcement made in August, the EV subsidiary stated its agreement to issue 6.18 billion new shares to the Dubai-based mobility company NWTN (Image: Reuters) (REUTERS)Premium
In an announcement made in August, the EV subsidiary stated its agreement to issue 6.18 billion new shares to the Dubai-based mobility company NWTN (Image: Reuters) (REUTERS)

The share sale plan involving China Evergrande New Energy Vehicle Group and United States-listed NWTN, has been stopped. This information comes from a filing with the Hong Kong stock exchange by China Evergrande on October 9.

The Chinese company stated in the filing that the suspension of the share subscription deal was a result of "significant uncertainties" linked to the Evergrande group, Reuters reported. The troubled property developer hold majority stake in electric vehicle (EV) company China Evergrande New Energy Vehicle Group.

Also Read: China Evergrande seeks to resume trading amid probe

In an announcement made in August, the EV subsidiary stated its agreement to issue 6.18 billion new shares to the Dubai-based mobility company NWTN. The total consideration for this was HK$3.89 billion ($496.72 million), indicating a subscription price of HK$0.6297 per share.

Investigations ongoing

According to the filing on Sunday, trading in shares of the China Evergrande New Energy Vehicle Group, which had been suspended on September 28, is set to resume on Monday - October 9.

Previously, Evergrande had reported the initiation of investigations against the parent company, its founder, and senior executives. Trading for the group had been halted last after its billionaire founder, Chairman Hui Ka Yan is under "mandatory measures" linked to "suspicion of illegal crimes".

Also Read: China property crisis: Know about rise and fall of Evergrande Founder Hui Ka Yan | Explainer

Simultaneously, the debt restructuring plan of the firm has faced setbacks.

The distressed property group stated that there is no other relevant information requiring disclosure.

According to a Wall Street Journal report, citing unnamed sources, Chinese authorities are investigating whether Hui tried to transfer assets offshore while the company was grappling with incomplete projects.

Evergrande is positioned at the core of a prolonged property crisis, adversely impacting the Chinese economy and diminishing confidence in the housing market. The company is scheduled for a hearing on October 30 in a Hong Kong court regarding a winding-up petition. This situation has the potential to compel the company into liquidation.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed - it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 09 Oct 2023, 08:00 AM IST
Next Story footLogo
Recommended For You