News summary
Evergrande Automobile announcement revealeddeuceswildmultihand, planned to sell approximately 58deuceswildmultihand58.5% of the.5% stake was given to independent third parties, while seeking credit support to maintain the electric vehicle business. The company is facing a shortage of funds and the Tianjin factory has stopped production. Trading in shares will resume on May 27.
Newsletter text
[Evergrande Automobile announced that it signed a term letter with an independent third-party buyer, involving share transfer and credit support]
Evergrande Automobile (00708.HK) recently announced that it has signed a term letter with an independent third-party buyer, involving 6.348 billion shares held by potential sellers, accounting for 58.5% of the company's total share capital. According to the terms and conditions, it is proposed that 3.145 billion shares and 3.203 billion shares will be acquired immediately and subject to options respectively.
In addition, Evergrande Automobile will also sign a credit agreement with the buyer to obtain funds to support the continued operation and development of its electric vehicle business. At present, Evergrande Motors faces a serious funding shortage problem, and its Tianjin factory has stopped production operations since the beginning of the year.
Evergrande Automobile stated that the terms and conditions are not legally binding, and the specific terms of the purchase and sales agreement and credit agreement have yet to be determined through further negotiation. The company plans to apply to the Stock Exchange to resume share trading starting from May 27.
According to Evergrande Motor's 2023 annual report, the company's revenue last year was 1.34 billion yuan and a net loss of 11.995 billion yuan. As of the end of 2023, Evergrande Automobile's total assets were 34.851 billion yuan and total liabilities were 72.543 billion yuan.
