Dubai-linked EV deal paused amid China Evergrande liquidation

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China Evergrande New Energy Vehicle said on Friday it has suspended negotiations on amendments to the terms of a HK$3.89bn ($497.42m) share subscription agreement with Dubai-based mobility firm NWTN.

In August, the electric vehicle unit of China Evergrande had agreed to issue 6.18 billion new shares to NWTN to support its parent’s restructuring plan.

READ MORE: Dubai-based mobility tech company NWTN delivers first batch of EVs

If the transaction had been completed, NWTN would have held a 27.50 per cent stake in NEV, while China Evergrande’s interest would have been diluted to 46.86 per cent.

NEV said if it decides to proceed with the subscription deal with NWTN, the parties will renegotiate the amendments to certain key terms.

The parties “are still considering whether the proposed transactions will proceed, and have yet to form a definitive view”, the EV unit said.

The announcement comes days after China Evergrande, the world’s most indebted property developer, was ordered to be liquidated after it was unable to offer a concrete restructuring plan.

This was more than two years after it defaulted on its offshore debt and follows several court hearings.