In August, the electric vehicle unit of China Evergrande had agreed to issue 6.18 billion new shares to NWTN to support its parent's restructuring plan. If the transaction had been completed, NWTN would have held a 27.50% stake in NEV, while China Evergrande's interest would have been diluted to 46.86%. NEV said if it decides to proceed with the subscription deal with NWTN, the parties will renegotiate the amendments to certain key terms.
China Evergrande New Energy Vehicle (NEV) said on Friday it has suspended negotiations on amendments to the terms of a HK$3.89-billion ($497.42 million) share subscription agreement with Dubai-based mobility firm NWTN . In August, the electric vehicle unit of China Evergrande had agreed to issue 6.18 billion new shares to NWTN to support its parent's restructuring plan. If the transaction had been completed, NWTN would have held a 27.50% stake in NEV, while China Evergrande's interest would have been diluted to 46.86%.
A top executive of China Evergrande's electric vehicle company has been detained by police in the latest sign of trouble for the world's most heavily indebted property developer. China Evergrande New Energy Vehicle announced the detention of Liu Yongzhuo, its vice chairman and an executive director, in a notice Monday to the Hong Kong Stock Exchange.