On the evening of June 10, the Chinese property giant Evergrande Health (A subsidiary of Evergrande Group) announced that Mini Minor and National Modern had entered into an equity sale agreement. According to the agreement, Mini Minor acquired the remaining equity of NEVS for USD 379.5 million and paid in four installments. National Modern has agreed to sell. At this point, NEVS will become a wholly-owned subsidiary of Evergrande.
The “story” between Evergrande and NEVS began more than a year ago. On January 15, 2019, Evergrande Health acquired Mini Minor Limited and its 51% stake in NEVS for a total consideration of US$930 million. Since then, Mini Minor has also made a subscription for new shares of NEVS. Before the announcement, Mini Minor owned an 82.4% stake in NEVS. Upon completion of the acquisition, NEVS will become a wholly-owned subsidiary of Mini Minor. In other words, Evergrande Health has a 100% controlling stake in NEVS.
Founded in April 2012, NEVS is a company specifically established to acquire the technology and assets of SAAB. NEVS is the name of National Electric Vehicles Sweden, it is a wholly-owned subsidiary of Hong Kong-based National Modern Energy Holdings Ltd. (NMEH), NMEH was founded and controlled by Swedish Chinese Jiang Dalong (Kai Johan Jiang). In September 2012, Jiang Dalong announced that NEVS had completed the acquisition of assets of Saab Automobile Co., Ltd., Saab Automotive Powertrain Co., Ltd., and Saab Auto Mould Co., Ltd. on August 31 of that year. At present, NEVS mainly focuses on the fields of electric smart vehicle manufacturing, electric motor control, smart charging, and shared travel.
However, since its acquisition by Evergrande, NEVS has made slow progress in car making. Evergrande has started the “buying ” pace all over the world, launching its new energy vehicle brand-Hengchi, and set a “goal of becoming the largest and most powerful new energy vehicle group in the world within 3-5 years”. The acquisition of the remaining shares of NEVS by Evergrande Health means that Evergrande’s determination to make cars and investment in NEVS are still relatively firm. Evergrande Health stated that it believes that with the help of the acquisition, it can consolidate the market position of the Group’s new energy industry. Since then, the wholly-owned subsidiary of NEVS will continue to conduct research and development for the Group’s Hengchi brand.