Polestar Performance AB and Gores Guggenheim have entered into a definitive business combination agreement that gives the combined company an enterprise value of $20 billion.
If approved, Polestar Automotive Holding UK Limited would list on the Nasdaq under PSNY.
Current Polestar equity holders will retain approximately 94% ownership in Polestar and roll 100% of their equity interests into the pro forma company.
Terms call for a $250 million PIPE and the approximately $800 million in the Gores Guggenheim trust, assuming no redemptions.
Founded in 2017, Polestar is a spin out of Volvo Cars and Zhejiang Geely Holding. The company’s two electric performance cars, Polestar 1 and Polestar 2, are on roads across Europe, North America and Asia. The Company has plans to launch three new models by 2024. Polestar delivered approximately 10,000 vehicles in 2020 and expects to sell approximately 290,000 vehicles per year by 2025. Existing investors include Volvo Car Group and affiliates of Geely Chairman Eric Li, and actor and activist Leonardo DiCaprio, among others. Read more.
