NWTN invests HKD3.89bn into Evergrande New Energy Auto


Baker McKenzie and Fangda Partners assisted NWTN Motor’s (NWTN) HKD3.89 billion (USD496 million) strategic investment into Evergrande New Energy Auto.

Capital markets partner Christina Lee led the Baker McKenzie team, representing Evergrande New Energy Auto, with the support of capital markets partners Lawrence Lee and Brian Wong, as well as banking and finance partner Simon Leung.

The Fangda team, advising NWTN, comprised capital markets partner Colin Law, corporate partners Sufina Cai and Patrick Li, banking partner Romy Zhuo, dispute resolution partner Su Yi and antitrust partner Wang Jin.

HKEX-listed Evergrande New Energy Auto is a Chinese automobile manufacturer specialising in electric vehicles and owned by Evergrande Group. It was suspended in March 2022 due to Evergrande’s debts, but it resumed trading in July.

This transaction involves swapping Evergrande and its shareholder Hui Ka Yan’s debts for Evergrande New Energy Auto’s equity, together with Evergrande issuing exchangeable bonds to its creditors.

On completion of the transaction, Hui and Evergrande, with a 21.75% stake in Evergrande New Energy Auto, will act in concert with NWTN, which will hold 27.5% of the acquisition target, making it the largest shareholder of Evergrande New Energy Auto.