Polestar to go public at $20 billion valuation via SPAC

Swedish electric-car maker Polestar said on Monday it will go public by merging with a blank-check firm backed by billionaire Alec Gores and investment bank Guggenheim Partners at a valuation of $20 billion including debt.

Polestar’s listing plan comes as automakers shift their focus to environment friendly vehicles, amid rising pressure from lawmakers and investors concerned about climate change.

The deal with Gores Guggenheim Inc will include cash proceeds of around $800 million, assuming no share redemptions by public stockholders of the blank-check firm.

The deal also includes a PIPE, or private investment in public equity, of $250 million from top-tier institutional investors.

Shares of Gores Guggenheim were up 7.8% premarket.

Polestar, backed by Volvo Car Group and affiliates of Geely Chairman Eric Li, also counts Hollywood actor Leonardo DiCaprio among its investors.

The premium EV maker’s offering includes two models — a hybrid performance car known as Polestar 1 and a fully electric Polestar 2 which are currently on roads across Europe, North America and Asia.

The company, which delivered about 10,000 vehicles last year, said it expects to sell about 290,000 vehicles per year by 2025 and plans to launch three new models by 2024.

Polestar said at the Beijing Motor Show last year that it has another model in development called the Precept, which is a larger sedan.

Polestar raised $550 million in external funding in April and announced plans in June to build Polestar 3 electric sport utility vehicles at Volvo’s U.S. plant in South Carolina from next year. It’s also planning on introducing a production version of the Polestar Precept Concept.

Current equity holders of Polestar, who will roll their entire interest in the combined company, will retain about 94% ownership, it said.

Post merger, the combined company will be named Polestar Automotive Holding UK Ltd and will trade under the symbol “PSNY” on the Nasdaq.

Related video:

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Automobile News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TechAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More