The electric car industry unit of the troubled China Evergrande Real Estate Development Group has agreed to sell about 28% of its shares to Dubai startup NWTN Inc, in a deal that will enable the automaker to continue its activity. .
NWTN has agreed to invest $500 million to buy the stake in the China Evergrande New Energy Vehicle Group in exchange for shares and a majority on the electric vehicle maker’s board, the companies announced yesterday.
The completion of the deal is subject to a number of conditions, including the restructuring of the debts of the “Evergrande” group, in addition to obtaining the approval of the regulators and shareholders.
For its part, NWTN, which was founded by Chinese businessman Alan Nan Wu, said it believes that the Evergrande New Energy Vehicle can help meet the demand for electric vehicles in the Middle East, including the UAE.
The two companies expect to close the deal during the last quarter of this year.
According to the highest valuation conducted in April 2021, the Evergrande New Energy Vehicle has surpassed the value of Ford Motor and General Motors, even though the company had not started sales. It is noteworthy that the company started delivering electric SUVs late last year.
2023-08-15 12:19:44
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