Shares of China Evergrande's EV unit soar after liquidators' stake sale deal

The non-binding deal by liquidators acting for Group, and provides for a third-party buyer to take a stake of 29% in the unit, with an option for 29.5% more, the said on Sunday.

The three collectively hold 58.5% of the , whose factory in the northern city of Tianjin stopped production at the start of 2024.

The EV unit said the term sheet also mentioned that the potential purchaser would provide a line of credit to fund its operation and business development.

Last week, China Evergrande New Energy Vehicle said its unit had received a letter from local administrative bodies demanding repayment of 1.9 billion yuan ($262 million) in subsidies and incentives.

Earlier this year, China Evergrande, the world's most indebted property developer, was ordered to be liquidated after it was unable to offer a concrete restructuring plan, more than two years after it defaulted on its offshore debt.