Reuters File Photo: People look at a Polstar car during the Munich Auto Show on September 8, 2021 at the IAA Mobility in Munich, Munich, Germany. Reuters / Michael Rehley
By Crystal Hu and Nick Kerry
(Reuters) – Swedish electric-carmaker Polster said on Monday it would go public with a US-listed blank-check firm backed by billionaire Alec Gores and investment bank Guggenheim Partners. Guggenheim Polestar will provide অর্থ 1 billion in cash, including 800 800 million from a special purpose acquisition company (SPAC), and ব্যক্তিগত 250 million from a private investment in a PIPE, or public equity, institutional investors.
Shares of Gores Guggenheim had gained some ground earlier and was up more than 4% in morning trading.
The deal comes at a time when large SPAC consolidation has become rare, as the business of making blank-check contracts deteriorates rapidly over the summer as investors fear a weak financial performance of many SPACs and a regulatory crackdown led by US Securities and Exchange. Commission on their disclosure.
Founded in 2017 by Volvo Car Group and Zhejiang Gili Holding of China, Palster counts Hollywood actor Leonardo DiCaprio among its investors.
The premium EV maker’s offer includes two models: a hybrid car known as the Polestar 1 and a fully electric Polestar 2. It was previously said that it has another model called the Precept, which is a larger sedan.
Polyester supplied about 10,000 vehicles worldwide last year and expects to sell about 290,000 vehicles per year by 2025. It predicts it will earn 6 1.6 billion this year and double that number next year.
Ride the EV Boom
The company’s enlistment plan comes at a time when carmakers are turning to environmentally friendly vehicles amid growing pressure from lawmakers and investors concerned about climate change.
Polestar joins other EV manufacturers in the public market, including Tesla (NASDAQ 🙂 and Lucid Motors, which went public in February under a 24 billion SPAC deal.
Polyester identifies an asset-light business model as a major differentiator, with existing production lines backed by Volvo and Gili, so it can focus on investing in research.
“We don’t need capital to build the factory. We can spend the money raised on technology and market development,” said Thomas Ingeloth, chief executive of Polstar, in an interview.
The company raised 5 550 million in external funding in April and announced plans to build a Polstar 3 electric sport utility vehicle at Volvo’s US plant in South Carolina in June.
Polyester’s current equity holders, who will pursue their full interest in the joint venture, will retain about 94% ownership, it said.
Volvo said Monday it would invest an additional ০০ 60,000 million in equity in Polstar and the joint venture is expected to have about 50 percent.
SPAC is a publicly listed company that is later raised with the intention of merging with a private company. For companies for the public, a SPAC merger serves as an alternative to a traditional theoretical IPO.
Once the deal is completed, the Polestar teaser symbol will trade on Nasdaq under PSNY.
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