Business
22:52, 25-Jun-2018
Evergrande Health to acquire Season Smart Ltd for 859 million US dollars
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Evergrande Health Industry Group Limited announced on Monday the acquisition of Hong Kong-based Season Smart Limited for 6.746 billion HK dollars (859.7 million US dollars).
The acquisition means Evergrande Health Industry Group, the subsidiary of Chinese property developer Evergrande Group, can indirectly obtain a 45-percent stake in Smart King Limited, a joint venture (JV) established by Season Smart Limited and electric vehicle company Faraday Future (FF).
The Season Smart Limited earlier offered a capital contribution of 2 billion US dollars to obtain a 45-percent stake in the JV, but Evergrande Health now owns the stake.
Evergrande Health, therefore, takes the place of Season Smart, becoming the largest shareholder of Smart King.
The original shareholders of FF will obtain a 33-percent stake by contributing FF’s industrial assets and businesses. The rest 22 percent will be reserved as equity allocated to employees under the equity incentive plan.
According to the announcement, Evergrande Group plans to nominate Xia Haijun, the group's vice chairman of the board of directors, as Smart King's chairman.
The deal was reviewed and approved by the Committee on Foreign investment in the United States (CFIUS).
Evergrande Health stated that the acquisition enables the company to gain strong competitiveness, capture market share and diversify its businesses in the fast-growing new energy auto industry.