Evergrande Health gains 51% stake in NEVS with value of $930 million
Shanghai (Gasgoo)- Evergrande Health Industry Group Limited (Evergrande Health) announced on January 15 that Solution King Investments Limited (the Purchaser), a wholly-owned subsidiary of Evergrande Health, has entered into a Sale and Purchase Agreement with Kerryman Holdings Limited (the Seller), pursuant to which the Purchaser agrees to acquire, and the Seller agrees to sell the Sales Shares for a total consideration of $930 million.
Completion of the acquisition took place on the date of the Sale and Purchase Agreement.
The Sales Shares refers to 300 ordinary shares in the share capital of Mini Minor Limited (the Target Company), which is also the entire share capital of the Target Company. According to the announcement, the only asset of the Target Company is its 51% shareholding in NEVS, a Sweden-headquartered electric vehicle maker.
The total consideration of $930,000,000 shall be paid in two installments: the first installment of $430,000,000 had been paid on 15 January 2019, and the remaining amount shall be paid on or before 31 January 2019.
On the same day, Evergrande Health entered into the Shareholder Loan Agreement with China Evergrande. Pursuant to the Agreement, China Evergrande has agreed to provide a three-year unsecured loan in the amount of $1,100,000,000 to Evergrande Health at an interest rate of 8% per annum.
It is noteworthy that pursuant to the NEVS Shareholder Agreement entered into between, among others, the Target Company, NMEHL (National Modern Energy Holdings Limited, a shareholder of NEVS) and NEVS, the directors appointed by the Target Company shall compose of the majority of the NEVS Board.
The announcement says that NEVS is a global electric vehicle company focusing on intelligent automobiles and is striving to become a global leader in sustainable and sharing-based smart mobility ecosystems.
In 2012, NEVS successfully acquired core assets and intellectual property rights of Saab Automobile AB, a Swedish company with 75 years of history. Carrying on the brand DNA of Saab, which sought to conjoin mobility with driver to achieve seamless driving experiences, and the profound technological heritage originated from Scandinavia, NEVS houses the world's top smart electric vehicles research and development center in Sweden with a global research and development team consisted of over 500 personnel, and a diversified international management team with more than 1,800 employees.
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