Miyoshi says that its EV-making JV in China, which has been put on hold, is in talks with potential partners to reactivate operations.
Miyoshi holds a 42% stake in the JV, Core Power (Fujian) New Energy Automobile.
Talks are ongoing and there’s no certainty of any deals. Besides reactivating the operations, talks might result in a sale of equity interests in the JV.
“The discussion is still ongoing and no definitive agreement has been executed in relation to the potential transaction,” the company says.
“There is no assurance or certainty that any agreement for the potential transaction will be eventually entered into and/or that such agreement, having been entered into, will be completed.
As of July 30 2020, Miyoshi has reclassified its investment in Core Power to a financial asset designated at fair value through profit or loss.
See also: Chinese EV makers slip further in Europe amid tariff tussles
As of Aug 31 2020, Miyoshi has deemed the fair value of its investment in Core Power to be reduced from $17.7 million to zero.
Miyoshi warns that it does not have any board representation in Core Power.
As such, it “does not have any significant influence over Core Power” and is unable to take part in any decision-making of Core Power.
Miyoshi shares closed April 14 at 1.8 cents, down 5.26% for the day.
