The merger with the special purpose acquisition company L Catterton Asia Acquisition Corp will result in a $3 billion deal that will value the combined group at $5.4 billion, according to people familiar with the matter on Tuesday.
The valuation takes into account $288 million of cash in LCAA's trust account, they said.
Lotus Tech is a luxury electric vehicle maker division of the sports car brand Group Lotus, which is jointly owned by Chinese automaker Geely and Malaysia's Etika Automotive.
They said that Lotus Tech's existing shareholders, including Geely, Etika and NIO Capital, will retain their interest in the company and will own almost 90 per cent of it after the deal.
The firm's current leadership team will also stay on, they added.
Lotus expects to begin deliveries in the first quarter of this year, as it said at the end of 2022 of its first electric sports utility vehicle SUV.