EV maker Indiev and Malacca Straits Acquisition today announced a definitive merger agreement that values the combined enterprise at $600 million.
Terms call for Indiev shareholders to receive Malacca stock valued at $600 million (subject to adjustments). In addition, the holders of Indiev shares will be eligible to earn up to an additional 20 million shares (approximately $200 million at current prices) on the achievement of performance milestones starting 150 days after the closing until Dec. 31, 2024, and vehicle sales targets for the first and second full years following closing.
Under the terms of the merger agreement, INDIEV will merge with a wholly-owned subsidiary of Malacca and the holders of the outstanding INDIEV shares will receive shares in Malacca valued at $600 million (subject to adjustments). In addition, the holders of INDIEV shares will be eligible to earn up to an additional 20,000,000 shares (approximately $200 million at current prices) on the achievement of performance milestones related to the price of the combined company’s common stock for the period starting 150 days after the closing until December 31, 2024 and vehicle sales targets for the first and second full years following closing.
Concurrently with the signing of the merger agreement, Indiev founder and CEO Hai Shi signed a PIPE subscription agreement to purchase $15 million in Malacca shares at $10 per share.
If approved, the deal is expected to close in the first quarter of 2023, with Malacca to domesticate from the Cayman Islands to a Delaware corporation. INDI Electric Vehicles is expected to list on the Nasdaq under the ticker symbol INEV.
Sheppard Mullin Richter & Hampton served as legal advisors to Indiev. Ellenoff Grossman & Schole served as legal advisors to Malacca. Maples Group acted as Cayman Islands counsel to Malacca. Read more.
