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China Evergrande's EV unit to cease discussions for stake sale

Published 10/25/2024, 10:32 AM
Updated 10/25/2024, 10:35 AM
© Reuters. FILE PHOTO: A view of the electric vehicle (EV) factory of China Evergrande New Energy Vehicle Group in Tianjin, China October 20, 2021. Picture taken October 20, 2021. REUTERS/Yilei Sun/File Photo
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(Reuters) - China Evergrande (HK:3333) New Energy Vehicle said on Friday that its potential sellers have decided to cease talks for a stake sale in the company, which is the electric vehicle unit of the debt-laden China Evergrande.

In May, liquidators of the parent company - which held 58.5% in the EV unit - said they were talking to a third-party buyer to sell a 29% stake in the EV group, with an option to sell the rest of the holding within a certain period of time.

China Evergrande - in a separate statement - said on Friday that its liquidators will continue to seek possible buyers and other opportunities to divest the shares in Evergrande NEV, but also flagged that it is not certain that such a transaction will take place.

© Reuters. FILE PHOTO: A view of the electric vehicle (EV) factory of China Evergrande New Energy Vehicle Group in Tianjin, China October 20, 2021. Picture taken October 20, 2021. REUTERS/Yilei Sun/File Photo

Evergrande NEV posted a net loss of 20.3 billion yuan ($2.9 billion) in the first half, widening from a 6.9 billion net loss a year earlier.

The company said an application has been made for the resumption of trading in shares on stock exchange from Oct. 28.

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