Evergrande’s Swedish electric vehicle unit in sale talks, CEO says

Stock Markets6 minutes ago (Oct 15, 2021 08:52PM ET)

(C) Reuters. FILE PHOTO: The National Electric Vehicle Sweden (NEVS) logo is pictured on one of its electric cars at its Beijing headquarters building December 28, 2015. REUTERS/Kim Kyung-Hoon

By Helena Soderpalm and Krystal Hu

STOCKHOLM (Reuters) -The Swedish electric vehicle unit of China Evergrande Group is in talks with U.S. and European venture capital firms and industrial partners to find new owners, its top chief said, as its Chinese parent battles default on more than $300 billion in debts.

National Electric Vehicle Sweden AB (NEVS), owned by the cash-strapped Chinese property developer, has funds to last “for a good while”, its Chief Executive Stefan Tilk said, adding that several investors were showing interest in the firm.

He declined to comment on a possible valuation. A source familiar with the situation told Reuters the unit could be valued at as much as $1 billion.

Evergrande has already missed three rounds of interest payments on its international bonds, and has been scrambling to sell some of its assets to raise cash.

The Chinese property developer has spent billions of dollars on stakes in automobile technology developers, including NEVS. It also has joint ventures with Germany’s Hofer and Sweden’s Koenigsegg.

NEVS, which received an electric vehicle production licence in China four years ago, is the Swedish arm of Evergrande’s EV unit Evergrande New Energy Vehicle Group.

Tilk said that NEVS is discussing a potential sale or other financing mainly with European and U.S. firms, but declined to name them.

“We are in dialogue both with venture people and companies that have the same idea and direction as us and want to get into this with our full competence,” he told Reuters. “So they are both industrial partners and venture capitalists.”

Evergrande NEV warned in stock exchange filings last month that it was still looking for new investors and to make asset sales, and that without either it may struggle to pay employee salaries and cover other expenses.

Tilk added that NEVS, which gave notice of redundancy to nearly half its roughly 650 workers in August, could hire staff again to get the competence Evergrande wants in Europe if it survives the crisis.

“If Evergrande can continue its operations, which they hope to do, they will be interested in having a footprint in Europe, with infrastructure like a plant, tests, lab. And we have that,” he said.

In the meantime NEVS, which bought carmaker Saab’s assets in 2012, is focusing on building its mobility ecosystem PONS, an autonomous ride-sharing network for smart cities and university campuses.

Evergrande’s Swedish electric vehicle unit in sale talks, CEO says

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Close