Evergrande’s EV spin-off transaction stalls

A deal between Evergrande and US-listed NWTN over the purchase of shares in the former’s electric vehicle (EV) wing has been halted.

According to the embattled property developer’s subsidiary, China Evergrande New Energy Vehicle Group, NWTN placed a pause on proceedings over the weekend due to “significant uncertainties”.

NWTN had agreed to purchase 6.18 billion newly issued shares in the EV firm for a total of HK$3.89 billion (£0.41 billion).

However, uncertainty related to Evergrande led NWTN to pull the plug on the deal.

Evergrande (HK:3333), the world’s most indebted property developer, has faced scrutiny in recent weeks after news of investigations into itself and founder Hui Ka Yan.

A selloff of shares in the EV business had been part of restructuring plans after the developer filed for bankruptcy in the US in August. However, these now appear to have been scuppered.

Public trading of shares in China Evergrande New Energy Vehicle Group had been suspended since 28 September, but will resume on Monday, according to a regulatory filing.