The legendary Lotus Cars is spinning off its EV division, Lotus Technology, in an initial SPAC offering valued at $5.4 billion!
Lotus, of course, is the iconic sports car brand that Colin Chapman led to Formula 1-winning glory decades ago, and whose innovations in chassis and vehicle dynamics drove the early success of industry giants like Tesla (the original Tesla Roadster was, in fact, little more than an Elise with “laptop batteries” in the back).
In more recent years, the brand was bought by Geely – the parent company behind Volvo and Polestar – and has lent its dynamic excellence to those brands as well. The spinoff of its Technology division will, presumably, enable that division to more easily gain automotive clients by creating a more distinct operating entity from Lotus Cars, and benefit the Cars brand by giving it some of the funds needed to bring more exciting electric products like the 2000 HP Evija and Eletere (above) to market.
“This is an exciting time for Lotus Tech as we work towards delivering our first fully electric hyper SUV, applying our innovation and engineering expertise to meet the rising global demand for luxury EVs,” said Mr. Qingfeng Feng, Chief Executive Officer of the company. “We believe the proposed Business Combination and listing will help position Lotus Tech as a leading global luxury EV company and will enable us to further execute our strategy, accelerate our growth, and importantly, further our mission to steer the industry towards a more sustainable future.”
The Business Combination transaction – that’s “SPAC talk,” by the way – between Lotus Technology and LCAA values the Combined Company at approximately $5.4 billion (US), with $288 million of cash from LCAA’s trust account included under the assumption that none of LCAA’s public shareholders elect to redeem their shares. Lotus Technology’s existing equity holders (a list of names that includes Geely Holding, Etika, and NIO Capital) are expected to retain their interests in Technology and maintain more than 85% of the issued and outstanding equity of the Combined Company immediately following the closing of the Business Combination (assuming none of LCAA’s public shareholders elect to redeem their shares, among other assumptions), underscoring their continued confidence in Lotus Tech’s growth strategy and outlook.
If none of that makes sense to you, you’re not alone. Just scroll down to look at some pictures of pretty cars, then let us know what you think of Lotus’ plan to spinoff its tech arm in the comments section at the bottom of the page.
600 HP Lotus Eletere SUV
SOURCE | IMAGES: LOTUS.
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