SPAC L Catterton Asia Acquisition Corp. (LCAA) plans to merge with luxury car and EV maker Lotus Technology (LOT) through a deal that estimates the enterprise value of the combined company at $5.4B.
The deal could generate cash proceeds for the company of up to $288M from LCAA's trust account, assuming no shareholder redemptions. The combined company will be headquartered in Wuhan, China, with shares expected to trade on Nasdaq under the symbol LOT. The merger is expected to close during the second half of the year.
Based in Wuhan, Lotus's roots can be traced back to the iconic British race car brand. Current backers include China's Geely Holdings (OTCPK:GELYF) (OTCPK:GELYY), Etika and NIO Capital. The company plans to roll out its first electric SUV in China in Q1 and in the UK and EU later this year.
Geely is a major player in the emerging EV space. Geely EV unit Zeekr filed for a US IPO in December. Another Geely EV unit, Polestar (PSNY), went public in June through a merger deal with SPAC Gore Guggenheim that valued the combined company at around $20B.