(Yicai) Feb. 26 -- China Evergrande New Energy Vehicle Group, the electric vehicle arm of struggling property developer China Evergrande Group, will sell its remaining 20 percent stake in the real estate investment company under its Swedish subsidiary to meet upcoming tax and other payment obligations.

Evergrande NEV agreed to sell 20 percent of National Electric Vehicle Sweden’s unit Trollhättan Propellern 13 to Swedish property management firm Logistikfastigheter i Trollhättan for SEK60 million (USD5.7 million), the Guangzhou-based company announced yesterday, citing an agreement signed on Nov. 25, last year.

Once the transaction is completed, the total disposal loss may amount to about SEK23.8 million, Evergrande NEV noted.

Moreover, the agreement stipulated that NEVS would sell a promissory note in the aggregate principal amount of SEK60 million at an aggregate consideration of SEK30 million to Logistikfastigheter i Trollhättan’s shareholders.

The P-note was issued in satisfaction of part of a SEK240 million (USD22.6 million) consideration payable by Logistikfastigheter i Trollhättan’s shareholders for acquiring the previous 80 percent of Trollhättan Propellern 13 in March 2023, with the remaining SEK180 million already settled in full in cash at the time.

In a separate statement yesterday, Evergrande NEV said its independent non-Executive Director Wang Kening resigned because he did not consider it appropriate for NEVS to sell the 20 percent stake in Trollhättan Propellern 13 and offer the P-note at a 50 percent discount.

Evergrande NEV’s restructuring plan has been hindered in recent years by a shortage of funds, difficulties in finding investors, and a complex market environment. On Feb. 3, the company announced it had been unable to find strategic investors or buyers to help alleviate its liquidity problems and promote a restructuring.

In the first half of last year, Evergrande NEV reported a net loss of CNY20.3 billion (USD2.8 billion), widening 195 percent from a year earlier, with revenue plunging 75 percent to CNY38.4 billion. As of June 30, 2024, the carmaker’s total liabilities were nearly CNY74.4 billion.

Shares of Evergrande NEV [HKG: 0708] were trading up 1.1 percent at 19.1 Hong Kong cents (2.4 US cents) as of 11.40 a.m. today, after falling 2.1 percent yesterday.

Editor: Futura Costaglione