elcowboymegaways| Evergrande Automobile: 29% of shares were acquired immediately, and the credit agreement supported the development of electric vehicle business

News summary

Evergrande Motor announced that 29% of its shares will be acquired immediately, involving 31elcowboymegaways.45 billion shares, accounting for total share capitalelcowboymegaways29%. At the same time, potential buyers will provide credit lines to support Evergrande Automobile's continued operations. The move could trigger mandatory general offer obligations and share trading will resume on May 27.

Newsletter text

[29% of Evergrande Motors 'shares are about to be acquired, and the transaction may trigger a comprehensive offer]

Since the suspension of Evergrande Automobile (00708.HK) was suspended on May 17, the market has continued to pay attention to its dynamics. On the evening of May 26, the company announced that it had reached a preliminary agreement with an independent third-party buyer to acquire 29% of its shares.

According to the announcement, potential sellers include China Evergrande Group and others, which hold a total of 58.5% of Evergrande Motors. Preliminary plans show that the buyer will immediately acquire approximately 29% of the shares, with the remaining 29.5% as the subject of future options.

In addition, the announcement also mentioned a credit agreement in which the buyer will provide a credit line to support Evergrande Motor's continuing operation and the development of its electric vehicle business. At present, Evergrande Automobile's Tianjin factory has stopped production and the problem of capital shortage is serious.

Once the sale and purchase agreement is formally signed, a mandatory general offer may be triggered. The offer period will begin to count from the date of announcement. The company plans to resume share trading on the Stock Exchange at 9 a.m. on May 27.

Looking back on May 17, Evergrande Motor's share price in Hong Kong rose sharply before the suspension was suspended, and the transaction volume surged. At the same time, the company was recently required to refund 1.9 billion yuan in rewards and subsidies and is seeking coordination from local administrative departments.