Baker McKenzie assists Hong Kong electric car company on $4.3bn shares issuance

Baker McKenzie has advised China Evergrande New Energy Vehicle Group Limited (Evergrande Auto) on the proposed issuance of 952.4 million new shares to six private investors, raising HK$26bn (A$4.3bn).

Evergrande Auto, the Hong Kong-listed unit of investment holding giant China Evergrande Group, said the proceeds of the sale will be invested in technology research and development, and used in the production of new energy vehicles.

The funding also propels the electric car company among the leaders in the global electric vehicle market, which include Tesla, and domestic rivals Nio and Xpeng Motors.

Partner Christina Lee led the Hong Kong-based Baker McKenzie team, supported by special counsel Brian Wong, and associates Stephanie Mak, and Adriana Chiu.

“We are pleased to advise Evergrande Auto on another strategically important capital markets transaction,” Lee said. “We are honoured to have played a part in their growth story and look forward to continuing to support them as they strive to become the world’s largest and most powerful new energy vehicle group.”

Baker McKenzie has also assisted China Evergrande on several other significant transactions, including its internet-power streaming subsidiary HengTen Networks Group Limited’s HK$7.2bn (A$1.2bn) acquisition of Virtual Cinema Entertainment Limited, and Evergrande Auto’s HK$4bn (A$667m) top-up placing and global investments in electric vehicle-related businesses.