On August 27, XPeng Inc., a leading smart electric vehicle company in China, entered into a share purchase agreement and a strategic cooperation agreement with DiDi Global Inc., a leading technology platform for shared mobility in China and international markets. Upon the initial closing of the share purchase agreement, XPeng will acquire the assets and research and development capabilities relating to a new smart electric vehicle model being developed by DiDi (the “New Smart EV Model”). XPeng will issue Class A common shares to DiDi representing approximately 3.25 percent of XPeng’s issued share capital as consideration for the purchase.
At the same time, XPeng and DiDi entered into a strategic partnership, making XPeng the first vehicle company to receive full support from DiDi’s ecosystem. Pursuant to the strategic cooperation agreement, the parties will explore long-term cooperation opportunities in a number of areas, including the operation of the New Smart EV Model on DiDi’s ride sharing platform and marketing.
S&C acted as international counsel to XPeng. Kay Ian Ng and Ching-Yang Lin led the S&C core team, which includes Hanzhi Wang, Brian Hu, Rosana Tse and Hester Choi.