China Evergrande New Energy Vehicle Update

(Reuters) – China Evergrande New Energy Vehicle announced on Friday that potential sellers have decided to stop negotiations regarding a stake sale in the company, which represents the electric vehicle unit of the financially troubled China Evergrande.

In May, the liquidators of the parent company, which had a 58.5% stake in the EV unit, disclosed that they were in discussions with a third-party buyer about selling a 29% stake in the EV group. This agreement included an option to sell the remaining shares over time.

In a separate statement, China Evergrande noted that its liquidators will continue to search for potential buyers and other avenues for divestment of shares in Evergrande NEV. However, they cautioned that a transaction is not guaranteed.

Evergrande NEV reported a net loss of 20.3 billion yuan ($2.9 billion) in the first half of the year, an increase from a 6.9 billion yuan net loss the previous year.

The company also stated that it has applied for the resumption of trading in its shares on the stock exchange starting October 28.