China Evergrande Group’s electric vehicle unit has agreed to sell its 20% stake in a Swedish real estate property lessor for 60 million krona ($5.63 million) as it seeks to meet urgent payment obligations, the company said on Tuesday.
The sale of the stake in AB Trollhättan Propellern 13 will help China Evergrande New Energy Vehicle Group (0708.HK) cover imminent tax payments and other financial commitments.
The company expects to incur a disposal loss of 23.8 million krona following the transaction with Logistikfastigheter i Trollhättan AB.
Evergrande, the world’s most indebted property developer with liabilities exceeding $300 billion, was ordered into liquidation by a Hong Kong court in January 2024 after defaulting on its offshore debt in late 2021.
Its EV subsidiary had initially aimed to compete with Tesla and at one point boasted a market valuation exceeding that of Ford Motor However, financial turmoil at its parent company has hindered those ambitions.
Source: Reuters