China Evergrande unit to sell two businesses as part of restructuring

(Reuters) – China Evergrande Group said on Monday its division New Energy Vehicle Group will sell two of its businesses to another unit of the group, as the embattled property developer attempts to restructure its organisation.

New Energy Vehicle Group will record a gain of about 24.79 billion yuan ($3.60 billion) following the sale of its Flaming Ace Ltd and Assemble Guard Ltd businesses to Anxin Holding for a nominal consideration of 2 yuan.

The property developer said the restructuring can optimize the structure of the unit to allow it to focus on the new-energy-vehicle (NEV) sector, which includes electric and plug-in hybrid vehicles.

New Energy Vehicle said it can take its NEV segment to the next stage of growth by “de-leveraging and reducing its holding of the projects”.

($1 = 6.8940 Chinese yuan renminbi)

(Reporting by Riya Sharma in Bengaluru; Editing by Shounak Dasgupta and Devika Syamnath)