Ailing Chinese real estate giant Evergrande’s auto unit has offloaded its Protean in-wheel motor outfit to UK-based e-mobility firm Bedeo.
Bedeo is buying Protean from National Electric Vehicle Sweden, which is a unit of Evergrande New Energy Vehicle Group.
Evergrande NEV bought Protean, which produces in-wheel motors – a type of EV drive system where motors power individual wheels, for $58 million, part of a series of deals made by the Chinese property developer as it pushed into EVs in 2019.
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Bedeo, which supplies light commercial vehicles and technology for zero emissions transport, is looking to expand into Asia and the US, did not disclose the financial terms of the deal.
The company has about 150 employees spread between the UK, China and the US and has issued more than 200 patents.
Shares in Evergrande NEV, which has a market value of about HK$35 billion ($4.5 billion), rose as much as 3.1% in Hong Kong trading on Thursday.
The Chinese group still has yet to deliver a single vehicle, despite billionaire founder Hui Ka Yan’s ambitions to take on industry giants such as Tesla.
Evergrande itself is trying to shed assets in a bid to avert a default as it struggles with more than $300 billion of liabilities. It’s been looking for a buyer for its property management arm and has sold off holdings in other companies including a Chinese bank.
“This acquisition ensures we will be well capitalised to meet the burgeoning demand from existing and new customers,” Protean Chief Executive Officer Andrew Whitehead said.
- By Sean O’Meara with additional reporting by Reuters
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