Evergrande Health to make $3 billion worth of further investment in NEVS

Posted on 11/13/2019 11:13:16 AM

Evergrande Health, a unit of China Evergrande Group, has agreed a further investment amounting of around $3 billion in its subsidiary NEVS, a Sweden-based intelligent EV manufacturer, as the company believes it will help NEVS's business growth.
Before talking about the latest transaction, it is necessary to review the history about how Evergrande Health controlled NEVS. On January 15, 2019, the company said its wholly-owned subsidiary had agreed to acquire the entire share capital of Mini Minor Limited, whose only asset was 51% shareholding in NEVS, for a total consideration of US$930,000,000. Thus, Evergrande Health became a main shareholder of NEVS from then on.
A further investment has been approved only ten months later. On November 10, Evergrande Health announced that Mini Minor had agreed to subscribe for the NEVS New Shares (representing roughly 42.19% of the enlarged issued share capital of NEVS) at a total subscription price of around HK$438,758,007 (US$56.055 million). Additionally, Mini Minor will make a payment in cash or in assets to NEVS in a total amount of US$2,852,843,395.14 by several installments.
According to the announcement, Mini Minor has also agreed to purchase the NEVS Sales Shares (representing around 0.89% of the enlarged issued share capital of NEVS) from National Modern at a total consideration of US$91,196,382.24.
Hence, the capital to be injected into NEVS aggregates nearly $3 billion. Upon completions of the above transactions, NEVS will be held as to 82.4% by Mini Minor from the previous 68%.
Evergrande Health said it believes that the newly-agreed investment will further replenish the general working capital of NEVS and its subsidiaries for their R&D and production, facilitating the business growth of NEVS.
The company also revealed that the R&D work for electric vehicles has been conducted by the wholly-owned subsidiary of NEVS under “Hengchi”, Evergrande Group's self-owned auto brand.

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