Evergrande Automobile Secures $500 Million Strategic Investment from Newton Group
Li Xu | 2023-08-14 23:12:02
August 14, 2023 – Evergrande Automobile (0708.HK) has announced that it has successfully obtained a strategic investment of approximately $500 million from Newton Group, based in Dubai, UAE. This investment will play a significant role in supporting Evergrande’s operations and development in the electric vehicle industry.
The strategic investment from Newton Group, a company listed on the Nasdaq stock exchange (NWTN), will allow them to hold approximately 27.50% of Evergrande Automobile’s issued shares. The total consideration for this investment amounts to HK$3,889,723,903, implying a subscription price of HK$0.6297 per share.
As part of the agreement, Newton Group and Evergrande New Energy Automobile have signed a financial support agreement for the transition period. This agreement includes the provision of three equal amounts of RMB 600 million interest-free and guaranteed transitional funds to Evergrande Automobile. These funds will be utilized for research and development, production, and sales activities.
Prior to the strategic investment, Evergrande Auto’s public float was at 41.39%. However, following the completion of a debt-to-equity swap, the public float is expected to decrease to approximately 31.08%. The subscriber of the strategic investment will become a core connected person to Evergrande, holding around 27.50% of the total issued shares.
The successful closure of this investment will further reduce the company’s public float to around 22.53%. This investment not only provides Evergrande Automobile with the necessary financial support but also strengthens its position in the market as a key player in the electric vehicle industry.
Evergrande Automobile is known for its innovative electric vehicles and has been expanding its operations both domestically and internationally. This strategic investment from Newton Group will undoubtedly fuel further growth and help Evergrande achieve its vision of becoming a leader in the global electric vehicle market.