Lotus Technology, a luxury EV maker majority owned by China’s Geely Holdings, today announced plans to merge with L Catterton Asia Acquisition at an implied $5.4 billion enterprise value. Lotus Technology does not include the traditional sports car assets of Lotus, which was founded in 1948. Geely also owns Volvo.
The SPAC is affiliated with Bernard Arnault, the world’s richest man.
If the SPAC’s shareholders approve the deal, Lotus Technology shares are expected to list on the Nasdaq under the ticker symbol LOT.
Terms call for Lotus Tech to receive up to $288 million from the SPAC’s trust account, assuming no redemptions.
All existing Lotus Tech equity holders, including Geely Holding, Etika, NIO Capital and othrs, are expected to retain their interests in Lotus Tech and would own approximately 89.7% of the combined company.
Lotus Tech leverages Geely Holding’s 150,000 annual unit production capacity, dedicated EV manufacturing and integrated racing facility in Wuhan, China. The target also operates wholly-owned R&D facilities spanning Coventry in the UK and Frankfurt in Germany, as well as Wuhan, Shanghai, and Ningbo in China. Read more.
