Up on blocks

2 January 2019 By Pete Sweeney Follow @petesweeneypro

The Hong Kong-listed conglomerate has ended a legal spat with electric-vehicle developer Faraday Future over a soured $2 bln investment. It seems unlikely that Evergrande’s stake in the troubled Chinese carmaker will ever pay off, but this deal at least limits the downside.

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Chinese electric-vehicle developer Faraday Future, founded by entrepreneur Jia Yueting, said on Dec. 31 that it had signed a new deal with a unit of its main investor, Evergrande, ending a bitter legal fight over a pledged $2 billion investment.

Season Smart, a wholly owned subsidiary of Evergrande Health, will own 32 percent of preference shares, according to a regulatory filing, down from 45 percent, but without additional investment, according to a tweeted announcement by Faraday Future.

Evergrande has invested $800 million in Faraday.

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