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Evergrande Health acquires 58.07% shares of CENAT for RMB 1.06 bln
CKN
2019/01/25 04:10:47
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China's News, China's Financial News,Evergrande Health

Jan 25, 2019 (China Knowledge) - Evergrande Health Industry Group has announced, yesterday, that it intends to acquire 58.07% share of CENAT, a power battery manufacturer, from Shenzhen Clou Electronics Co., Ltd., for RMB 1.06 bln.

CENAT was co-founded by China Automotive Technology and Research Center Co., Ltd. (CATARC) and a Japanese company ENAX, Inc., in May 2010. It is a high-tech enterprise that takes the lead in research, production and sales of soft packing lithium-ion batteries in China. In 2018, its installed capacity of power battery ranked among top ten in Chinese market, and installed capacity of soft packing power battery ranked among top three.

Power battery is one of the core components of new energy vehicle (NEV), and a key constituent for the development of NEV business. Evergrande Health said this acquisition was aimed at perfecting its layout in new energy vehicle industry. This acquisition can help Evergrande to control the cost of NEV and make it more competitive in Chinese market.

Evergrande had already set up a new subsidiary to focus on the new energy vehicle business on 2 Jan. Later the company paid USD 930 mln for a 51% majority share of National Electric Vehicle Sweden to obtain the production qualification of NEV indirectly. Evergrande had already become the second large shareholder of Guanghui through acquisition, laying a distribution channel of NEV. Through a series of acquisition actions, Evergrande is positively stepping into the field of manufacturing, sales, and key parts of NEV. 

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