According to EnergyTrend, Eve Energy released two major announcements on May 28, disclosing the progress of an equity swap and a debt-to-equity capital increase by a related party.
As stated in the announcements, Eve Energy will revise its equity swap plan with SK On. Under the original arrangement, subsidiary EVE Power was set to acquire a 4.2% stake in EVE Jineng and pay RMB 200 million in cash. The deal will now be implemented by EVE Asia, another wholly-owned subsidiary of Eve Energy.
Following the adjustment, EVE Asia will purchase the 4.2% equity interest in EVE Jineng from South Korea’s SK On for RMB 200 million in cash. Meanwhile, EVE Power Hong Kong, a fully-owned subsidiary of EVE Power, will swap its 30% stake in SK New Energy for the 44.8% equity interest in EVE Jineng held by SK On.
Upon completion of the revised transaction, SK On will fully exit its shareholding in EVE Jineng, and Eve Energy will indirectly hold a 100% stake in the latter.
On the same day, Eve Energy issued a separate announcement. Xizang EVE Holdings, the company’s controlling shareholder, plans to carry out a debt-to-equity capital increase in associate Jin Kunlun Lithium Industry with claims worth RMB 61.4358 million, subscribing for approximately RMB 49.3510 million of newly added registered capital.
After the capital increase, the registered capital of Jin Kunlun Lithium Industry will be raised. Xizang EVE Holdings will hold a 13.36% stake, while Eve Energy’s shareholding will drop from 28.1250% to 24.3671%. Jin Kunlun Lithium Industry will remain an associate of Eve Energy. This move will support the steady development of the company’s upstream lithium resource business and will not affect its normal operations or operational independence.
Source：EnergyTrend