Tue. Mar 28th, 2023

By Dave Sebastian

A blank-check firm fashioned by private-equity agency L Catterton is extending a deadline to finish a deal, after agreeing to take electric-vehicle maker Lotus Expertise Inc. public.

L Catterton Asia Acquisition Corp. had been on account of full a deal by March 15 — 24 months after the closing of its preliminary public providing — or danger dissolution. The special-purpose acquisition firm has given itself leeway to increase the deadline till March 15, 2024, based on the merger settlement it disclosed Tuesday.

L Catterton Asia Acquisition and Lotus Tech mentioned they count on the deal to shut within the second half of the yr.

SPACs are shell firms that elevate cash from traders and listing publicly, with the only real goal of mixing with a personal firm to take it public.

L Catterton Asia Acquisition’s board should approve an modification to the SPAC constitution earlier than Feb. 15 in order that it might probably prolong the deal deadline to June 15 from March 15, the businesses mentioned. The SPAC’s board, on the request of the sponsor, can then prolong the deadline on a month-to-month foundation for as much as 9 occasions till March 15, 2024, they added.

The deal is among the many largest current SPAC transactions, as common merger values have fallen amid increased rates of interest and a softening economic system. L Catterton Asia Acquisition and Lotus Tech mentioned they count on the mixed firm to be price about $5.4 billion, together with roughly $288 million in money from the SPAC’s belief account.

Wuhan, China-based Lotus Tech makes luxurious EVs below the British-founded Lotus model. It joins different EV makers and suppliers in Asia which are dashing to capital markets to lift cash, as they attempt to benefit from a surge in demand for energy-efficient autos. Zhejiang Geely Holding Group, one among China’s largest automobile makers, is Lotus Tech’s majority proprietor.

Write to Dave Sebastian at [email protected]

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