Agile Group Holdings takes stake in electric vehicle company WE Solutions
May 13, 2019 (China Knowledge) - China’s electric vehicle market has drawn in yet another property developer as Agile Group Holdings takes an HKD 200 million stake in WE Solutions.
WE solutions which is based in Hong Kong has issued 400 million new shares to Agile at the price of HKD 0.51 per share, nearly 10% higher than its last closing price.
In recent times, China’s fast-growing electric vehicle market has attracted the attention of major real estate developers in the country such as Evergrande Group, Baoneng Group and Country Garden. The reason being that a stake in the electric vehicle sector allows the developer to participate in the industry’s growth while also helping it to win local land deals.
Developers are now finding it increasingly difficult to acquire land for pure residential development as the Chinese government continues to keep close watch over the country’s housing market to prevent any sharp price changes.
Local authorities now try to attract developers in by offering plots of land with industrial development requirements.
Agile Group and WE Solutions are planning to explore research and development of new energy vehicle technologies and products with most of the new funds to be spent on collaborative projects between the two companies.
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