Zhitong Financial APP News, Evergrande Automobile (00708) issued an announcement that on May 16, 2024, the company had learned that the joint and individual liquidators were and represented by China Evergrande Group (in liquidation) and Evergrande Health Industry Group Co., Ltd., Acelin Global Limited(collectively referred to as potential sellers) and a person independent of the company and its connected persons to the best of the company's directors 'knowledge, knowledge and belief after making all reasonable inquiries (as defined in the Listing Rules)gamesonavalancheblockchainA third-party buyer (potential buyer) entered into a term letter pursuant to which the potential seller and the potential buyer may enter into a final sale and purchase agreement for the purchase and sale of shares in the company held by the potential seller.
As at the date of this announcement, potential sellers hold a total of 63%gamesonavalancheblockchain.48 million shares (approximately 58.5% of all issued shares)(potential shares for sale). Subject to the conclusion of the sale and purchase agreement and subject to its terms and conditions, it is proposed that 3.145 billion potential sale shares (representing approximately 29.0% of all issued shares as at the date of this announcement) will be acquired immediately, and 3.203 billion potential sale shares (representing approximately 29.5% of all issued shares as at the date of this announcement) will become the subject of an exercisable option by the potential buyer for a certain period after the date of the sale and purchase agreement.
The Company has also learned that the terms and conditions mentioned a credit agreement under which the potential buyer (or another party designated by the Company with its consent) will provide credit to the Company to support the Group's continued operation and development of the Group's electric vehicle business. At present, the group is seriously short of funds. The Group's Tianjin factory has no longer been in production since the beginning of this year. As of the date of this announcement, production has not yet resumed at the Group's Tianjin factory.
The announcement stated that after the sale and purchase agreement is signed, the obligation to make a mandatory general offer may be triggered. For the purposes of the Takeovers Code, the offer period begins from the date of this announcement.
In addition, the company will apply to the Stock Exchange to resume trading in the company's shares on the Stock Exchange starting from 9:00 a.m. on May 27, 2024.