(Yicai Global) Jan. 15 -- A unit of Evergrande Group has paid USD930 million for a majority stake in the owner of Saab Automobile, just two weeks after the Chinese property giant disentangled itself from US electric car startup Faraday Future.
The subsidiary has taken a 51 percent stake in National Electric Vehicle Sweden, Guangzhou-based Evergrande Health said in a statement today.
NEVS bought Saab out of bankruptcy in 2012, with a view to melding Sweden's engineering heritage and Chinese green entrepreneurship. Former stakeholders in NEVS included Hong Kong's National Modern Energy Holdings (31 percent), Tianjin Gao Xin Bohua Investment (30 percent), and Qingbo Investment (22 percent).
After Evergrande Health revealed plans last June to invest in Faraday Future, investors welcomed the potential shift in business focus. The deal marked cash-rich Evergrande Group's official entry into the competitive new energy vehicle sector. But the relationship turned sour.
Today, Evergrande Group's shares [HKG:3333] gained 3 percent to close at HKD22.35 (USD2.85). The benchmark Hang Seng Index advanced 2 percent. The company has lost almost a quarter of its value since an August high amid a broader selloff in Chinese equities.
In late December, Evergrande Health penned a restructuring agreement regarding its planned USD2 billion investment in Faraday Future, helmed by Chinese businessman Jia Yueting. The restructuring will reduce its stake to 32 percent from 45 percent, while relinquishing control over the Californian carmaker's pledged assets.
Editor: Emmi Laine