redditroulette| Evergrande Automobile: Potential buyers plan to acquire 29% of the shares and provide credit lines to ease financial pressure

News summary

Evergrande Automobile announcement revealedredditroulette, has signed terms with potential buyers, involving 63redditroulette47.9 billion shares, accounting for 58% of the issued sharesredditroulette.5%。Among them, 29% of the shares will be traded immediately and 29.5% will be the subject of the option. This move may bring financial relief to Evergrande Automobile. Currently, the company's liabilities are as high as 72.543 billion yuan, and its cash and cash equivalents are only 129 million yuan.

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[Evergrande Motors seeks new capital injection to relieve financial pressure]

Evergrande Automobile recently announced that it has entered into a term letter with the liquidator of China Evergrande Group, Evergrande Health Industry Group Co., Ltd. and Acelin Global Limited (potential sellers) and an independent third-party buyer. According to the terms and conditions, potential sellers and potential buyers may reach a final sale and purchase agreement on the purchase and sale of 6.3479 billion shares of Evergrande Automobile held by potential sellers (accounting for 58.5% of the issued shares).

Specifically, 3.145 billion shares (approximately 29%) will be acquired immediately, while another 3.203 billion shares (approximately 29.5%) will become the subject of options for potential buyers for a certain period of time in the future. In addition, the terms and conditions also mention that a credit agreement will be entered into and the potential buyer or its designee will provide a credit amount, which may bring much-needed funds to Evergrande Automobile.

At present, Evergrande Motors faces a serious funding shortage. As of the end of 2023, the company's total liabilities reached 72.543 billion yuan, while cash and cash equivalents were only 129 million yuan. In addition, Evergrande Automobile was also required to return approximately 1.9 billion yuan in subsidies. Financial pressure has caused its Tianjin factory to stop production since the beginning of the year, and the factory only produced production last year.redditroulette1700 Hengchi 5 models were purchased.

Evergrande had previously tried to solve the funding problem through cooperation with Newton Group, but the strategic investment agreement was terminated in April this year due to failure to meet the prerequisites. Yan Jinghui, a member of the Expert Committee of the China Automobile Dealers Association, pointed out that the car-building industry requires a large amount of capital investment, and the financial pressure on Evergrande Automobile has further intensified.

Despite this, Evergrande Automobile emphasized in its announcement that the terms and conditions are not legally binding, and the final terms of the purchase and sales agreement and credit agreement still need to be further negotiated and determined by both parties. This capital injection from potential buyers is crucial to Evergrande and may determine the future development of its electric vehicle business.