EVERGRANDE Health Industry is acquiring the remaining 17.6% stake in National Electric Vehicle Sweden (NEVS) for US$379.50 million, making the company a wholly owned subsidiary.
NEVS was founded in 2012 after the acquisition of the main assets of Saab Automobile during its bankruptcy proceedings. The company has developed two pure electric vehicle models that have reached production standards, and operates manufacturing bases in Trollhattan in Sweden and Tianjin in China. It is also planning to develop a facility in Shanghai.
Evergrande, one of China’s top real estate developers is active in community health management, international hospitals, elderly care and rehabilitation, and has investments in high-technology new energy vehicle manufacturing.
In January 2019, Evergrande first invested in NEVS by acquiring the firm's 51% shareholder, the British Virgin Islands-incorporated Mini Minor, for US$930 million. It subsequently boosted its stake to 82.4%.
On June 10, Evergrande announced that Mini Minor has entered into an equity sale and purchase agreement with National Modern, pursuant to which Mini Minor has agreed to purchase, and National Modern has agreed to sell, its remaining NEVS shares for US$379.5 million. Upon completion of the acquisition, NEVS becomes a wholly owned subsidiary of Mini Minor.
National Modern is a company incorporated in the British Virgin Islands. Its principal business activity is the NEVS investment holding. It is controlled by NEVS founder Kai Johan Jiang, so it is a related party transaction.
The purchase price values NEVS at nearly US$2.2 billion. NEVS is engaged in intelligent electric vehicle manufacturing, motor electronic control, power battery production, smart charging and travel-sharing, according to the announcement.