A startup company in Dubai invests half a billion dollars in the Chinese “Evergrande” in exchange for shares and a majority in the board of directors.

Aug 16th

Dubai-based startup NWTN has announced an investment of $500 million in the electric car unit of the Chinese Evergrande Real Estate Development Group, Evergrande New Energy Vehicle, in return for obtaining shares and a majority in the board of directors of the Chinese company. .

In turn, Evergrande New Energy Vehicle agreed to sell approximately 28% of its stake to NWTN, which led to a 47% rise in its shares in Hong Kong trading before settling on gains of 21%, with expectations that it would enable it This deal is able to continue operating after it reported a staggering $11.7 billion loss for 2021 and 2022.

The transaction is also subject to conditions that include a restructuring of the group’s debt, in addition to regulatory and shareholder approvals; This is according to what the two parties announced.

NWTN, which was founded by Chinese businessman Alan Nan Wu, believes that the partnership with Evergrande will contribute to meeting the growing demand for electric vehicles in the Middle East, including the United Arab Emirates. The transaction is expected to close in the fourth quarter of this year.

In turn, the partnership with NWTN offers hope and potential stability to the struggling Chinese electric vehicle unit; It aims to overcome its financial problems and remain a major player in the electric vehicle market.