The China Evergrande Group, a Chinese property developer, is in talks with Xiaomi and Shenzhen state backed investment firms to sell a part of its stake in its electric vehicle unit.
According to a Reuters report, Evergrande is looking to sell part of its 65 percent stake in the Evergrande New Energy Vehicle (NEV) Group as per sources close to the matter. As of right now, the NEV has a market capitalization of 12.5 billion US Dollars and a source stated that the Chinese tech giant and investment firms are looking to buy a significant minority stake in the business. Unfortunately, Evergrande, Xiaomi, and the state asset regulators have yet to offer any comments regarding this matter.
As per the sources, the talks regarding the acquisition of stakes is apparently still at the early stages and might undergo changes as well. Earlier this month, Evergrande stated that it was in discussions with several independent third party investors for the proposed sale of certain assets, which included the stakes of its New Energy Vehicle unit. This move is an effort to reduce its debts.
For those unaware, Xiaomi has recently been raising its investment into the electric vehicle based firms and technology ever since it revealed its 10 billion US Dollar plan for entering the EV market. This had also followed closely after it was revealed that even Apple and Huawei were eyeing the electric vehicle industry as well. So, the new acquisition would give Xiaomi EV production facilities for its own automobile business.
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