Arizona based electric vehicle manufacturer Nikola Corp. (NKLA) announced that its South Korea based investor Hanwha Corp. (KRX: 000880) will be reducing its investment in the EV manufacturer by 50%.
Citing a filing with the securities exchange commission, Hanwha holds 5.65% stake in Green Nikola Holdings a subsidiary of Nikola. It’s this stake which Hanwha will be selling 11.1 million shares from. With respect to the Nikola’s stock last closing price, this sale will be worth $180 million.
The spokesperson of Hanwha said the company will be using proceeds from the sale to invest in hydrogen-related businesses further adding that this sale does not mark the end of partnership between the two companies in anyway.
Hanwha purchased its first Nikola stake in November 2018 way before the company went public.
Last year Nikola’s founder and former chairman Trevor Milton was summoned by the U.S. Department of Justice concerning claims of fraud by short-seller Hindenburg. The allegations suggested that Milton was making false claims of Nikola partnering with several notable automakers.
This resulted to resignation of Milton from the chairman position and since then, the stock of Nikola has declined by about 50%.