[YesAuto News] China Evergrande (03333.HK) announced on the evening of September 23 that Evergrande Group and Guanghui Group have signed a strategic cooperation agreement. Leverage the resource advantages of both parties to integrate resources and jointly promote the development of related industries.
According to the announcement, the controlling shareholder of Guanghui Group promised that within 7 working days from the signing of the investment agreement, the existing shareholders of Guanghui Group other than the controlling shareholder of Guanghui Group would transfer a total of 23.9% of Guanghui Group’s equity to Evergrande Group. The consideration is RMB 6.68 billion. Evergrande Group will increase its capital to Guanghui Group for RMB 7.81 billion. After the capital increase is completed, Evergrande Group will hold nearly 41% of Guanghui Group's equity and become the second largest shareholder of Guanghui Group. The total price of the above transaction is 14.49 billion yuan.
According to data, Guanghui Group is mainly engaged in energy, automobile sales, logistics and real estate businesses, with business scope covering the country and many countries in the world. Regarding the reasons for the equity investment, China Evergrande stated that in order to better promote the future development of the company, it has launched a comprehensive strategic cooperation with Guanghui Group to promote the company's development in the fields of automobile sales, energy, real estate and logistics.
Prior to this, Evergrande Group had already deployed in the automotive field. On June 25, Evergrande Health, a subsidiary of Evergrande Group, announced that it would acquire 100% of the shares of Hong Kong Shiying Company for HK$6.75 billion, thereby obtaining 45% of the shares of Smart King Company owned by it, and becoming the largest shareholder of Smart King. Faraday Future (FF) is wholly-owned by Smart King.
In mid-July this year, FF's first mass-produced FF 91 body-in-white rolled off the assembly line. FF has previously stated that it will start delivering mass-produced models in December this year. This time China Evergrande’s investment in Guanghui Group may help FF open the Chinese market.