Dubai Automotive Manufacturer Newton Group's investment in China Evergrande Automobile Agreement will fail on December 31 last year. Evergrande Motor said that it will continue to negotiate, but Evergrande Automobile New Year's opening of the first day of Hong Kong stocks fell by more than 15%.
According to the Securities Times website, Evergrande Automobile announced on the evening of New Year's Day (January 1) that Newton Group's shares of Evergrande Automobile's share subscription agreement and corporate debt -to -stock subscription agreement were in 2023Lisable on December 31.It is understood that the deadline for these two agreements is December 31, 2023, and the agreement signed party has not agreed to extend.
The two agreements mentioned by Evergrande Automobile signed on August 14, 2023.The main content of the stock subscription agreement of Newton Group is that Newton Group implemented a strategic investment of about 500 million US dollars (about S $ 661 million) to Evergrande Motor and provided a transition funds for 600 million yuan (about S $ 112 million); debtThe shareholding agreement refers to the debt of HK $ 20.895 billion (approximately $ 3.536 billion) debt owed by Evergrande Automobile's new shares to offset Evergrande Automobile's new shares.
Evergrande Automobile has announced that the company plans to use all the funds for the investment in Evergrande Automobile Tianjin Factory to ensure the normal production of Hengchi 5 and the successive mass production of Hengchi 6. Hengchi 7.Newton Group will also assist Evergrande Automobile to develop overseas markets to achieve 30,000 to 50,000 Hengchi Automobile exported to the Middle East market each year.
Although the two agreements were officially invalidated by Monday, it was suspended as early as October 8, 2023. At that time, Newton Group provided only 200 million yuan of transitional funds.Evergrande Automobile announced on the same day that Newton Group had suspended the relevant obligations in the shares subscription agreement.The change of transactions was directly related to the "Xu Jiayin's mandatory measures" exposed at that time. This incident interrupted the process of Evergrande's US dollar debt restructuring, which caused Evergrande Automobile to be unable to meet the prerequisite of the transaction.
Newton Group put forward two requirements for Evergrande Automobile to further promote the transaction: First, the Evergrande Group's debt restructuring plan involved in the shares subscription agreement needs to be re -adjusted, and there are plans to launch new new ones.Reorganization plan; second, Evergrande Group, Evergrande Automobile, creditors and related parties are willing to re -negotiate the adjustment of the proposal transaction plan under the premise of the new restructuring plan.In contrast to the progress of the debt reorganization of Evergrande Group, the two requirements are still not met.
The failure of the two agreements does not mean that Evergrande Automobile has abandoned the transaction.Evergrande Automobile responded in the announcement on Monday that Newton Group's shares subscription agreement and debt -to -equity subscription agreement and several stakeholders will continue to revise several key terms of proposed transactions and debt -to -equity swaps for consultations.EssenceThe company will make a monthly announcement until the accurate intention or decision of proposed transactions and debt -to -equity swaps will not be announced.
