BRIEF: Pateo sells remaining Avita stake for $8.78 million

Smart cockpit solutions provider Pateo Connect Technology (Shanghai) Corp. (2889.HK) announced last Friday that its non-wholly owned subsidiary, Huzhou Chuangsheng Chiming Equity Investment Partnership Enterprise, has agreed to sell its remaining 0.24% equity interest in Avita Technology (Chongqing) Co. Ltd. to Wuhu Henghe No. 3 Venture Capital Fund Partnership Enterprise for a consideration of 62.44 million yuan ($8.78 million). Upon completion, Pateo will no longer hold any shares in Avita.

The disposal marks the latest in a series of stake reductions over the past six months. Pateo previously sold a combined 0.67% interest prior to and around its Hong Kong IPO, followed by an additional 0.04% in late October. With the latest transaction, Pateo has divested 0.91% of Avita’s shares. The company said the disposals help to lock in investment gains, enhance liquidity, and reduce short-term earnings volatility arising from fair-value fluctuations. The company expects to record a pre-tax loss of approximately 8.34 million yuan from the recent disposals.

Founded in 2018, Avita is a high-end intelligent electric vehicle (EV) manufacturer. Its principal shareholders include Changan Automobile and CATL, while Huawei is a strategic partner providing intelligent driving algorithms and its HarmonyOS-based smart-cockpit systems. Media reports earlier suggested that Avita had considered filing for a Hong Kong IPO in October, though the plan has yet to materialize.

Pateo Connect’s stock opened lower but later rebounded on Monday and closed at HK$179.40 by the midday break, up 5.4%.

By Lee Shih Ta

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