HomeIndustriesEvergrande EV Shareholders Agree on Restructuring Deal

Evergrande EV Shareholders Agree on Restructuring Deal

Shareholders of China Evergrande New Energy Vehicle Group agreed to a restructuring proposal, a filing with the Hong Kong stock exchange showed. According to the filing, the restructuring will see the company dispose of two subsidiaries.

Over 50% of the stakeholders’ votes were cast at a general meeting on Friday evening. The vote was managed by the EV company owned by China Evergrande, which is primarily a property development company.

The vote followed an announcement on April 25, in which the EV unit announced that it would look to sell the two debt-laden subsidiaries to another unit under China Evergrande as part of the unit’s restructuring. The EV unit is expected to gain $3.6 billion as a result of the transaction.

According to a previous stock filing by the EV unit, the two subsidiaries that are to be sold held a combined 47 property projects. The company added that this deal would help the business unit to focus on its new energy vehicle segment in a bid to improve its valuation, which “may help to attract investors to Evergrande Auto and raise funds”.

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