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Highlights
- Polestar Performance AB is all set to join with blank check firm Gores Guggenheim (NASDAQ:GGPI, GGPI:US).
- The electric vehicle (EV) company is known to be backed by Hollywood star Leonardo DiCaprio.
- The Gothenburg, Sweden-based enterprise is said to have a presence in 14 active markets across Europe.
Polestar Performance AB, an international electric vehicle (EV) company, is all set to get a listing in the North American markets via a merger with blank check firm Gores Guggenheim (NASDAQ:GGPI, GGPI:US).
The Swedish premium EV maker, known to be backed by Hollywood star Leonardo DiCaprio, was founded by automobile giants Volvo Cars and Geely Holding in 2017. The Gothenburg, Sweden-based enterprise is said to have a presence in 14 active markets across Europe, North America and China. This year, it expanded into five new territories across the Asia Pacific region.
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Now, let’s take a peek at Polestar’s listing plans.
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Polestar Performance AB SPAC details
The Swedish EV manufacturer’s planned merger with the special purpose acquisition company (SPAC) is expected to be completed in the first half of 2022.
The merger, which is said to value the combined entity at about US$ 20 billion, is set to see Polestar shareholders keep about 94 per cent of its ownership and roll 100 per cent of their equity interests in the new company.
The transaction, the company said, will see a private investment in public equity (PIPE) financing of US$ 250 million that will be anchored by some of the top institutional investors.
The merger is also expected to an investment of US$ 800 million from SPAC Gores Guggenheim, which is held in its trust account.
Following a successful merger, the newly formed entity will be known as Polestar Automotive Holding UK and begin trading on the Nasdaq under the ticker of ‘PSNY’.
In October, however, legal firm Rigrodsky Law PA said that it is carrying out an investigation into the SPAC on for possible violations of fiduciary duties in its merger deal with Polestar.
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Bottom line
EV makers, while witnessing their demand go up amid rising climate change awareness, have been going public via SPAC mergers right, left and center over the past year. So, Polestar and Gores Guggenheim’s business combination may not be wild news.
However, what could stir investor interest in this SPAC merger is Polestar’s major backing, including Volvo Cars and Oscar winner Leonardo DiCaprio.
The Gores Group, on the other hand, could draw some attention too as the investment company not only has over 30 years of experience in the field, but is also said to have invested over US$ 4 billion across some 120 acquisitions.
Investors interested to explore the new company may have to wait till the SPAC merger closes next year, or they could also check out the SPAC’s stock that is currently trading on the NASDAQ.
As on Friday, November 12, Gores Guggenheim’s stock surged by nearly 16 per cent to close at US$ 12.8 apiece.
