The electric-vehicle unit of defaulted property developer China Evergrande Group said a planned $500 million share sale to a Dubai-based carmaker has expired, raising more doubts about the fate of the cash-strapped EV manufacturer, reports Caixin. Hong Kong-traded China Evergrande New Energy Vehicle Group Ltd., also known as Evergrande Auto, said late Monday that the share subscription and loan conversion agreement with Nasdaq-listed NWTN Inc. lapsed on Dec. 31. Neither party agreed on an extension of the long-stop date, according to a company filing.
The parties and certain stakeholders, however, have continued negotiating on amendments to certain key terms of the proposed deal, said Evergrande Auto.
A person close to the matter told Caixin that the expiration of the agreement did not necessarily mean the termination of the deal and the parties will need to rework the transaction arrangements. Evergrande Auto still hopes to attract strategic investment, said the person.