Homepage
PR Newswire
26-06-2018, 03:54 PM
Evergrande pays US$853.85 million for stake in troubled electric vehicle maker Faraday Future
Xie Yu
PUBLISHED : Monday, 25 June, 2018, 8:50pm
UPDATED : Tuesday, 26 June, 2018, 1:49pm
A unit of Evergrande Group has injected capital into struggling electric car manufacturer Faraday Future, effectively taking control of the company formerly owned by troubled entrepreneur Jia Yueting, according to a stock exchange filing on Monday.
Evergrande Health Industry Group, the Hong Kong-listed unit of Evergrande Group, has agreed to acquire Season Smart for HK$6.7 billion (US$853.85 million), the company said in a filing to the Hong Kong stock exchange on Monday afternoon.
Last year Season Smart took a 45 per cent stake in a joint venture with struggling electric car maker Faraday Future following a US$2 billion capital injection.
According to the filing, Evergrande will replace Season Smart to become the biggest shareholder of Faraday Future, with a 45 per cent stake. The original shareholders of Faraday Future will keep a 33 per cent while 22 per cent of equity will be reserved for employees.
Faraday Future was founded by Jia Yueting in 2014 in Los Angeles to build electric cars that could challenge Tesla. Jia remains among the original shareholders.
But Faraday Future’s operations in Nevada were shut late last year as Jia struggled to keep afloat his cash-strapped business empire LeEco.
More details in http://www.scmp.com/business/companies/a...ic-vehicle
Xie Yu
PUBLISHED : Monday, 25 June, 2018, 8:50pm
UPDATED : Tuesday, 26 June, 2018, 1:49pm
A unit of Evergrande Group has injected capital into struggling electric car manufacturer Faraday Future, effectively taking control of the company formerly owned by troubled entrepreneur Jia Yueting, according to a stock exchange filing on Monday.
Evergrande Health Industry Group, the Hong Kong-listed unit of Evergrande Group, has agreed to acquire Season Smart for HK$6.7 billion (US$853.85 million), the company said in a filing to the Hong Kong stock exchange on Monday afternoon.
Last year Season Smart took a 45 per cent stake in a joint venture with struggling electric car maker Faraday Future following a US$2 billion capital injection.
According to the filing, Evergrande will replace Season Smart to become the biggest shareholder of Faraday Future, with a 45 per cent stake. The original shareholders of Faraday Future will keep a 33 per cent while 22 per cent of equity will be reserved for employees.
Faraday Future was founded by Jia Yueting in 2014 in Los Angeles to build electric cars that could challenge Tesla. Jia remains among the original shareholders.
But Faraday Future’s operations in Nevada were shut late last year as Jia struggled to keep afloat his cash-strapped business empire LeEco.
More details in http://www.scmp.com/business/companies/a...ic-vehicle
Specuvestor: Asset - Business - Structure.