Evergrande’s Swedish electric vehicle unit in sale talks, CEO says
The Nationwide Electrical Automobile Sweden (NEVS) emblem is pictured on considered one of its electrical vehicles at its Beijing headquarters constructing December 28, 2015. REUTERS/Kim Kyung-Hoon
STOCKHOLM, Oct 15 (Reuters) – The Swedish electrical car unit of China Evergrande Group is in talks with U.S. and European enterprise capital companies and industrial companions to search out new house owners, its high chief mentioned, as its Chinese language dad or mum battles default on greater than $300 billion in money owed.
Nationwide Electrical Automobile Sweden AB (NEVS), owned by the cash-strapped Chinese language property developer, has funds to final “for an excellent whereas”, its Chief Govt Stefan Tilk mentioned, including that a number of buyers had been displaying curiosity within the agency.
He declined to touch upon a doable valuation. A supply conversant in the scenario advised Reuters the unit may very well be valued at as a lot as $1 billion.
Evergrande has already missed three rounds of curiosity funds on its worldwide bonds, and has been scrambling to promote a few of its property to boost money.
The Chinese language property developer has spent billions of {dollars} on stakes in car know-how builders, together with NEVS. It additionally has joint ventures with Germany’s Hofer and Sweden’s Koenigsegg.
NEVS, which obtained an electrical car manufacturing licence in China 4 years in the past, is the Swedish arm of Evergrande’s EV unit Evergrande New Vitality Automobile Group .
Tilk mentioned that NEVS is discussing a possible sale or different financing primarily with European and U.S. companies, however declined to call them.
“We’re in dialogue each with enterprise individuals and firms which have the identical thought and route as us and wish to get into this with our full competence,” he advised Reuters. “So they’re each industrial companions and enterprise capitalists.”
Evergrande NEV warned in inventory alternate filings final month that it was nonetheless searching for new buyers and to make asset gross sales, and that with out both it could wrestle to pay worker salaries and canopy different bills.
Tilk added that NEVS, which gave discover of redundancy to just about half its roughly 650 staff in August, might rent workers once more to get the competence Evergrande needs in Europe if it survives the disaster.
“If Evergrande can proceed its operations, which they hope to do, they are going to be fascinated by having a footprint in Europe, with infrastructure like a plant, exams, lab. And we’ve that,” he mentioned.
Within the meantime NEVS, which purchased carmaker Saab’s property in 2012, is specializing in constructing its mobility ecosystem PONS, an autonomous ride-sharing community for sensible cities and college campuses.
Reporting by Helena Soderpalm in Stockholm and Krystal Hu in New York; Enhancing by Sumeet Chatterjee and Jan Harvey
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