Xpeng Motors: Volkswagen has completed an investment of over 5 billion yuan

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Xpeng Motors announced on December 6th that the share purchase agreement with Volkswagen Finance Luxembourg S.A., a subsidiary of Volkswagen, has been successfully completed. According to this agreement, Xpeng Motors has issued 94.079255 million Class A ordinary shares to the company, which account for approximately 4.99% of Xpeng Motors’ total issued and publicly traded share capital after the completion of the transaction.

The purchase price of each American Depositary Share is set at $15, at an exchange rate of HKD 7.8096 per share representing two Class A common shares and HKD 1.00 per share, which is equivalent to a price of HKD 58.6 per share of Class A common shares. The total purchase price of the shares this time is approximately 706 million US dollars, and Xpeng Motors has received a net investment of approximately 705 million US dollars (approximately 5.049 billion RMB) after deducting related costs and expenses.

Xpeng Motors plans to use this net amount for general company purposes, including meeting the company’s operational capital needs. In addition, according to the technical framework agreement signed between Xpeng and Volkswagen for strategic technical cooperation, Xpeng and Volkswagen have made significant progress in jointly developing two B-class pure electric vehicle (mid-size vehicle) models. The feasibility study of the project has achieved positive results and has been completed. In addition, both sides are actively evaluating deeper strategic cooperation in the field of intelligent electric vehicle technology.

On July 26th, Volkswagen Group announced that the Volkswagen brand had reached a technical cooperation framework agreement with Xpeng Motors. Volkswagen Group will increase its capital to Xpeng Motors by approximately $700 million, holding approximately 4.99% of Xpeng Motors’ equity at a price of $15 per share after the transaction is completed.

In the initial stage of cooperation, both parties plan to jointly develop two electric models under the Volkswagen brand for the mid-size car market in China. These two new cars, exclusively for the Chinese market, will supplement the product portfolio based on the MEB platform and are planned to enter the market in 2026.

Subsequently, Xpeng Automobile Chairman He Xiaopeng stated in the third quarter financial report of 2023 that in addition to the efficient promotion of the G9 platform based model jointly developed with Volkswagen, the strategic cooperation between the two sides in the supply chain is also gradually being implemented.