Shareholders of Evergrande’s EV unit agree on restructuring deal

Shareholders of China Evergrande New Energy Vehicle Group (0708.HK) accepted a proposal to dispose of two subsidiaries in a restructuring, according to a filing with the Hong Kong stock exchange on Friday night.

More than 50% of the votes under the EV company, a unit of embattled property developer China Evergrande (3333.HK), were cast at a Friday general meeting in favour of a proposal raised in late April, the filing said.

The EV unit on April 25 announced the plan to sell two debt-laden companies to another unit under China Evergrande as part of the auto firm’s restructuring.

The EV unit was expected to book a $3.6 billion gain from the transfer, while the two companies to be sold held 47 property projects altogether, said a previous stock filing by the EV unit.

The deal would help the EV unit focus on the new energy vehicle segment and could help improve its valuation and eventually “may help to attract investors to Evergrande Auto and raise funds”, said a separate filing by the group company.

This report’s information was first seen on REUTERS; to read more, click this link.