Apollo Future Mobility divests share in Divergent Technologies amidst US national security concerns
August 19, 2024
Caixin Global has reported that Apollo Future Mobility Group, a Hong Kong-traded investment company with Chinese backing, has announced the sale of its holding in US-based Additive Manufacturing company Divergent Technologies. The company cited concerns over US national security scrutiny.
Divergent Technologies, located in Torrance, California, USA, developed the Divergent Adaptive Production System (DAPS) and is the parent company of performance automotive brand Czinger Vehicles, maker of the Czinger 21C hypercar featuring over 350 AM components.
Apollo Future Mobility stated that it will sell its entire 12.87% stake in Divergent Technologies in a deal expected to cost it a record loss of approximately $13.6 million.
Apollo Future Mobility’s stake in Divergent Technologies surpasses the maximum limit for foreign ownership established by US regulations. This prevents the company from obtaining US-classified defence contracts. As a result, Divergent Technologies has reportedly requested that Apollo Future Mobility and other foreign shareholders who exceed the ownership limit divest, according to the Hong Kong-based firm.
Formerly known as WE Solutions, Apollo Future Mobility counts high-profile businesspeople from the Chinese mainland, Hong Kong and Macao as major backers. Its business focuses on investments and expands to designing, developing, manufacturing and electric vehicle sales. The company also operates in jewellery and watch sales, as well as lending services.
Citing its major shareholders’ connection with the Chinese government, Apollo Future Mobility reportedly stated that the holding in a US military supplier could expose the company and its shareholders to potential US regulatory scrutiny and penalties.
