SHANGHAI Lotus Technology will go public in the United States via a merger with special purpose acquisition company L Catterton Asia Acquisition Corp in a deal that will value the combined group at $5.4 billion.
The valuation takes into account $288 million of cash in LCAA's trust account, it said. When it went public in 2021, L Catterton raised $250 million.
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.
The unit is headquartered in the central Chinese city of Wuhan and produces cars through a partnership with Geely.
Lotus Tech's existing shareholders, including Geely, Etika and NIO Capital, an investment firm founded by the CEO of Chinese electric vehicle maker Nio Inc, will retain their interests in the company and own 89.7 per cent of it after the deal, it said.
The company's shares will list on the Nasdaq under the ticker symbol LOT it added and the current leadership will stay on.
Lotus Tech's chief executive officer Feng Qingfeng said the partnership will provide significant support as the company expands globally, with promising brand collaboration and strategic partnership potential worldwide.
Lotus Tech plans to deliver its electric sports utility vehicle SUV Eletre in China in the first quarter and then in Britain and the European Union later this year, it said, adding that it plans to expand deliveries to the United States and other countries.
Deutsche Bank and Credit Suisse were among the advisors on the deal.