Lotus Expertise, a division of Lotus accountable for EV improvement, is about to go public through a SPAC deal.
Additionally known as a reverse merger, a SPAC deal is the place a personal firm goes public by being taken over by an organization that is already listed, sometimes one arrange solely for this objective, identified in investor circles as a particular objective acquisition firm (SPAC). The benefit is that it avoids the complexity (particularly regulatory necessities) of launching an IPO.
In an announcement on Tuesday, Lotus Expertise stated it plans a reverse merger with the Nasdaq-listed SPAC firm L Catterton Asia Acquisition Corp in a deal that may worth the mixed entity at $5.4 billion. Shares of the mixed entity would even be listed on the Nasdaq, below the ticker image “LOT.”
Lotus Expertise stated it plans to make use of the cash it raises from the deal to fund car improvement and develop its international distribution community. Timing for the deal wasn’t talked about.
Lotus Expertise relies in Wuhan, China, and is the division accountable for the Lotus Eletre electrical SUV. It is also growing two different Lotus EVs, a sedan and one other SUV. It’s headed by Feng Qingfeng, who will stay as CEO after the merger. Electrical sports activities automobiles from Lotus, just like the Evija hypercar, for now are nonetheless being developed by Lotus at its headquarters in Hethel, U.Ok.
Lotus Expertise’s present shareholders are Geely, Etika Automotive, and Nio Capital, and they’re going to proceed to personal 89.7% of the corporate after the deal closes. Etika is a Malaysian provider which along with Geely are the first shareholders of Lotus Expertise’s Lotus dad or mum. Nio Capital is an funding agency based by William Li, the CEO of rival EV agency Nio.
The Lotus Expertise deal will not be the primary for a Geely-owned firm in recent times. Different Geely owned or managed corporations which have gone public just lately embody Volvo and Polestar. One other Geely firm, EV startup Zeekr, can also be rumored to be seeking to go public.