China Evergrande EV unit to issue fresh shares in restructuring plan – Reuters

Aug 14 (Reuters) – Embattled property developer China Evergrande Group (3333.HK) said on Monday its listed electric-vehicle arm has agreed to issue new shares to certain subscribers to ease loan burden and improve liquidity as part of its restructuring proposal.

Under the terms, China Evergrande New Energy Vehicle Group (0708.HK) (NEV) will issue an aggregate of 5.44 billion new shares in the unit for HK$3.84 per NEV share, pooling an amount of HK$20.89 billion ($2.67 billion).

The fresh issue is intended to pay off loans of NEV due against China Evergrande and its founder Hui Ka Yan, and his unit Xin Xin (BVI) Ltd, among others.

About 4.18 billion NEV shares to be issued to China Evergrande will be deposited into custody accounts under the…

Read the full article at: https://www.reuters.com/business/autos-transportation/evergrande-ev-unit-issue-fresh-shares-bolster-restructuring-plans-2023-08-14/