China Evergrande EV unit plans share sale for vehicle production

China Evergrande New Energy Vehicle Group Ltd plans to sell 174.83 million new shares, or 1.76% of the increased share capital, in a top-up placement, it said in a filing to Hong Kong Stock Exchange.



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Evergrande New Energy Vehicle Group Ltd plans to sell 174.83 million new shares

China Evergrande’s electric vehicle unit said on Wednesday it plans to sell HK$500 million ($64.2 million) worth of shares to produce new-energy cars made by its Hengchi brand. China Evergrande New Energy Vehicle Group Ltd plans to sell 174.83 million new shares, or 1.76% of the increased share capital, in a top-up placement, it said in a filing to the Hong Kong exchange on Wednesday. The new shares will be sold at HK$2.86, representing a 19.89% discount to Tuesday’s close of HK$3.57, to its controlling shareholder Evergrande Health Industry Holdings Ltd.

Upon completion of the sale of an equal amount of existing shares at the same price to third party investors, the controlling shareholder will purchase new shares. China Evergrande New Energy Vehicle said the move is aimed at paving the way for Hengqi to start production of new-energy vehicles.

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Evergrande New Energy Vehicles said the move was intended to pave the way for Hengqiu to start production of new-energy vehicles

The electric-vehicle unit is seeking Chinese regulatory approval to sell its inaugural Hengchi 5 sport-utility vehicles, as the embattled company vows to start making the car early next year. The directors had considered various options for raising funds.

China Evergrande, the world’s most indebted, is stumbling over debt repayment deadlines as it grapples with more than $300 billion in liabilities.

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