Helena Soderpalm & Krystal Hus

STOCKHOLM – China Evergrande Group’s Swedish subsidiary for the electric vehicle sector is meeting with U.S., European and other venture capitalists to seek new investors, according to its chief. The talks are taking place as China Evergrande Group fights against defaults on over $300 billion of its debts.

National Electric Vehicle Sweden AB AB (NEVS), which is controlled by the cash-strapped Chinese property developers, Stefan Tilk, stated that it has the funds necessary to survive “for a long time”. He added that there were several potential investors.

His comments on possible valuations were not made. An insider familiar with the situation said that the unit could have a value of up to $1 billion.

Evergrande is currently in a scramble to get cash. It has missed interest payments for three consecutive rounds on international bonds and it has had to cancel some assets.

Chinese property developer, NEVS, has invested billions of dollars in stakes in automotive technology developers including NEVS. Additionally, it has joint ventures in Germany with Hofer and Sweden with Koenigsegg.

NEVS is Evergrande’s Swedish arm. It received an electrical vehicle production license in China four-years ago.

Tilk indicated that NEVS discussed a sale or financing mainly with European-American firms but refused to give their names.

“We have been in dialog both with venture professionals and companies with the same idea as us, and are looking to do this with our full expertise,” he stated to Reuters. They are industrial partners as well as venture capitalists.

Evergrande NEV stated in its stock exchange filings that it is still seeking new investors, to sell assets and that it could struggle without these.

Tilk stated that NEVS could hire again staff to acquire the European competence Evergrande desires if the crisis ends.

Evergrande hopes to continue operations and will consider establishing an infrastructure in Europe such as plant, laboratory, testing, etc. “And we have that,” said he.

NEVS bought the assets of carmaker Saab in 2012. It is now focusing its efforts on creating its mobility ecosystem PONS. This autonomous ride-sharing network will be used to connect smart cities with university campuses.