© Reuters. FILE PHOTO: People look at a Polestar automobile throughout the Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. REUTERS/Michaela Rehle
By Krystal Hu and Nick Carey
(Reuters) -Swedish electric-car maker Polestar mentioned on Monday it would go public by merging with a blank-check agency backed by billionaire Alec Gores and funding financial institution Guggenheim Partners at a valuation of $20 billion together with debt.
Polestar’s itemizing plan comes as automakers shift their focus to setting pleasant automobiles, amid rising strain from lawmakers and buyers involved about local weather change.
The cope with Gores Guggenheim Inc will embody money proceeds of round $800 million, assuming no share redemptions by public stockholders of the blank-check agency.
The deal additionally features a PIPE, or non-public funding in public fairness, of $250 million from top-tier institutional buyers.
Shares of Gores Guggenheim had been up 7.8% premarket.
Polestar, backed by Volvo Car Group and associates of Geely Chairman Eric Li, additionally counts Hollywood actor Leonardo DiCaprio amongst its buyers.
The premium EV maker’s providing consists of two fashions – a hybrid efficiency automobile often known as Polestar 1 and a completely electrical Polestar 2 that are at the moment on roads throughout Europe, North America and Asia.
The firm, which delivered about 10,000 car final yr, mentioned it expects to promote about 290,000 automobiles per yr by 2025 and plans to launch three new fashions by 2024.
Polestar mentioned at the Beijing Motor Show final yr that it has one other mannequin in growth known as the Precept, which is a bigger sedan.
Polestar raised $550 million in exterior funding in April and introduced plans in June to construct Polestar 3 electrical sport utility automobiles at Volvo’s U.S. plant in South Carolina from subsequent yr.
Current fairness holders of Polestar, who will roll their total curiosity within the mixed firm, will retain about 94% possession, it mentioned.
Post merger, the mixed firm might be named Polestar Automotive Holding UK Ltd and can commerce beneath the image “PSNY” on the Nasdaq.
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