Status:  Clearance


Acquirer:  Evergrande Health Industry Group Limited (Hong Kong SAR, China); China Evergrande (China)

Acquired:  Faraday Future (US)

Value:  US$870 Million

Industry:  Technology; Electric Vehicles; Autonomous Driving

Digital CarOn June 25, 2018, Evergrande Health Industry Group Limited entered into an agreement with Mr. Chiu Tao, the seller, to acquire the entire share capital of Season Smart Limited and certain debt for a total consideration of HK$6,746,700,000 (approx. US$870 million).  (See Evergrande Health Industry Group Limited, Acquisition of the Entire Issued Share Capital of the Target Company, June 25, 2018, HK Exchange Filing.)  The only asset of Season Smart Limited is a 45% equity interest in Smart King Ltd., a Cayman Islands company, which wholly owns the business of Faraday Future, “a global internet company focused on building smart mobility ecosystems,” including electric vehicle technology. (Id.)  “Completion of the Acquisition took place on the date of the Share Sale and Purchase Agreement.” (Id.)  According to the security disclosure of Evergrande Health Industry Group Limited, Season Smart Limited “received a notice from the Committee on Foreign Investment in the United States (CFIUS) on 18 June 2018 that CFIUS had completed its review of the relevant transactions, including the Acquisition.”  (Id.; see also The Verge, Faraday Future reveals the source of its $2 billion investment as a co-founder steps away, June 26, 2019, “Evergrande Health, a subsidiary of the Chinese conglomerate and real estate giant Evergrande Group, is now the largest shareholder of Faraday Future after acquiring a 45 percent stake in the automotive company for a total of $2 billion.”)