Hyperdrive
Evergrande’s EV Maker Soars on $500 Million Stake Sale Deal
- Dubai-based NWTN to buy stake in Chinese developer’s car unit
- Evergrande NEV issued a going-concern warning last month
The China Evergrande Group headquarters in Shenzhen, China.
Photographer: Gilles Sabrie/BloombergThis article is for subscribers only.
The electric-vehicle unit of defaulted property developer China Evergrande Group agreed to sell a roughly 28% stake to Dubai-based startup NWTN Inc., sending the carmaker’s shares soaring Tuesday on expectations the deal could keep it in business.
NWTN will invest $500 million in China Evergrande New Energy Vehicle Group Ltd. in exchange for shares and a majority of the EV maker’s board, the companies announced Monday. The transaction is subject to conditions including Evergrande Group’s debt restructuring, as well as regulatory and shareholder approvals.