Jia Yueting has given up the status of FF major shareholder, Evergrande Group is the largest shareholder of FF. Jia Yueting’s condition of giving up the status of a major shareholder is “locking the CEO of FF for 15 yearsâ€.
In order to allow his new energy vehicle brand Faraday future (FF) to survive and grow, LeTV founder Jia Yueting has now given up the status of a major shareholder. On April 16th, it was learned from people close to Jia Yueting that the end of 2017, the Chinese real estate developer, Evergrande Group, which invested in FF global registered in the FF global of Cayman offshore company, has become the largest shareholder of FF.
“Locking the CEO of FF for 15 years†is the condition for Jia Yueting to give up the largest shareholder. The person close to Jia Yueting said, “Jia Yueting has now retired as the second largest shareholder.â€
With the transfer of the status of the major shareholder, the investor has already sent financial personnel to FF USA and FF (China) to which FF Global belongs, and fully took over the finance of FF.
A person close to the transaction said that the investment amount of Evergrande Group was about 300 million US dollars. At the time, FF's valuation was only $1.5 billion. If calculated, Evergrande may hold a 20% stake in FF's Cayman company.
According to the above-mentioned insiders, the consortium represented by Evergrande Group paid $100 million in funds to the FF account before and after signing the investment agreement to help the FF tide over the difficulties.
"Hengda's investment is life-saving, otherwise FF may face bankruptcy," the source said.
Evergrande's $300 million investment was finalized before Christmas 2017. On December 13, 2017, FF internally claimed to complete $1 billion in financing. "Only a few executives in FF know that the scope does not exceed five people." At that time, a source told Tencent that "the first line" said that investors hope to low-key the financing, do not want to disclose more details.
As investors' information continues to emerge, FF plans to hold a press conference around May to announce more news about investors and new FF trends.
I have to mention the recent 601-acre Ruichi Smart Car (Guangzhou) Co., Ltd. in Nansha District, Guangzhou. The company's wholly-owned shareholder is Hong Kong-registered company Smart Mobility (Hong Kong) Holdings Limited, established in 2016. On October 20, the original name was FF Hong Kong Holdings Limited (Fafa Automotive Ecology (Hong Kong) Co., Ltd.).
Almost at the same time, on December 1, 2017, Fafa Automotive Ecology (Hong Kong) Co., Ltd. pledged 95% of its shares in Fafa (China) Co., Ltd. to Shiying Co., Ltd. On November 30, the French-French Ecology (Hong Kong) Co., Ltd. and Shiying Co., Ltd. reached an investment agreement in the offshore company in Cayman, and 95% of the equity pledge was a guarantee for the investment.
The signing column of the pledgee is Zhao Du of Shiying Co., Ltd., which has the same name as the chairman of the board of Zhongyu Group. Founded in 1993, Zhongyu Group is a financial holding company that covers e-logistics and mining.
Zhongyu Group and Evergrande Group are inextricably linked. According to the 2017 Interim Report of Zhongyu Group, as of September 30, 2017, the Group held 2.66% and 0.12% of the shares of Evergrande Health and China Evergrande Group respectively. At the same time, the group also holds 9.5% and 8.75% of the senior notes of China Evergrande Group.
Earlier, Jia Yueting hoped to sell the shares of Lucid, another electric car company he invested, to save the funding crisis in the rescue of FF, but ultimately backfired.
Jia Yueting is Lucid's largest shareholder and holds a 38.02% stake in Lucid. The earliest name of Lucid was ATIeva. Jia Yueting took a stake in July 2014 and held a shareholding ratio of approximately 13%, making it the second largest shareholder. At that time, in the same round of investment with Jia Yueting, there was another automobile company in China, Beiqi New Energy Automobile Co., Ltd., a subsidiary of BAIC Group, which had a shareholding ratio of 25.02%. Due to the delay in the launch of Lucid's products, BAIC transferred the shares of Lucid to Jia Yueting.
As of press time, the Evergrande Group official did not respond to the reporter's request for comment, and the reporter was unable to contact the FF official to comment on the matter.
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