Geely’s Lotus goes public via SPAC at $5.4 billion valuation
(Bloomberg) – Lotus Technology, the electric car maker owned by China’s Zhejiang Geely Holding Group Co., has agreed to merge with a blank check company in a deal that values the combined entity at around $5. .4 billion dollars.
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L Catterton Asia Acquisition Corp. will partner with the British car group’s electric vehicle manufacturing subsidiary that Geely acquired in 2017, the two said in a statement on Tuesday. The sponsor of the ad hoc acquisition company has ties to Bernard Arnault, the richest man in the world.
Lotus Tech has been looking to go public since at least the beginning of last year. Management may have been encouraged by the recent listing of another luxury car brand: Porsche AG achieved Europe’s biggest IPO in a decade when it launched in Frankfurt in September. A week later, Porsche overtook Volkswagen AG as Europe’s most valuable automaker.
Rather than go the IPO route, Lotus Tech will merge with a SPAC whose sponsor partnered in the private equity operations of luxury powerhouse Arnault LVMH in 2016. LVMH is a minority investor passive in L Catterton, according to a spokeswoman.
Arnault overtook Tesla Inc. CEO Elon Musk as the world’s richest man last month – the first time a European has topped the Bloomberg Billionaires Index.
While Group Lotus is tiny compared to Tesla, Geely has moved it away from combustion engines and has several all-electric models planned for years to come. Lotus Tech sees itself as a competitor to Ferrari and Aston Martin, and will get a jump on those brands’ early electric models.
Lotus unveiled its all-electric Eletre sport utility vehicle last year and plans to launch a rival to Porsche’s popular Taycan EV in 2023.
Geely and other owners are expected to retain an 89.7% stake in Lotus Tech after the SPAC merger. Geely’s billionaire owner Li Shufu also controls Swedish automaker Volvo Car AB and has stakes in Germany’s Mercedes-Benz Group AG and Britain’s Aston Martin Lagonda Global Holdings Plc.
Deutsche Bank AG advised Lotus Tech on the transaction, while Credit Suisse Group AG acted as capital markets adviser to SPAC.
–With the help of Siddharth Philip.
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Geely’s Lotus goes public via SPAC at $5.4 billion valuation
