Evergrande enlarges car layout by buying major stake in Guanghui Group

Shanghai (Gasgoo)- China Evergrande Group (Evergrande) announced on September 23 the strategic cooperation agreement with Xinjiang Guanghui Industry Investment Group Co.,Ltd (Guanghui Group). Both parties agreed to jointly develop businesses in such areas as car sales, energy, real estate and logistics, etc.

Under the agreement, Evergrande will acquire 23.865% stake transferred by Guanghui Group's investors with RMB 6.68 billion. Besides, the acquirer agreed to increase capital of RMB 7.81 billion in Guanghui Group. Therefore, Evergrande will obtain a total of 40.964% stake in the target firm, involving RMB 14.49 billion in total after the whole transaction completes.

The deal will make Evergrande become Guanghui Group's second-largest shareholder, only next to Guanghui Group. The actual controller is still Sun Guangxin, founder and chairman of Guanghui Group.   

Guanghui Group, the parent company of China's largest PV dealership group, China Grand Auto Services Co., Ltd, works on such businesses as energy, car sales, logistics and real estate with its footprints spreading over China and a number of overseas markets.

On June 25, Evergrande Health Industry Group Limited, a subsidiary of Evergrande Group, announced that it has acquired 100% stake in the Hongkong-based Season Smart Limited (Season Smart) with an investment of HK$6.746 billion. At the same time, the subsidiary has indirectly obtained 45% stake in Smart King Ltd, a joint venture between Season Smart and the EV startup Faraday Future (FF), which signified that the real estate giant has formally become FF's largest shareholder.