Geely’s Lotus Tech to gain Nasdaq listing via SPAC deal as it prepares to launch its first model Eletre in China soon
- Lotus Tech is a division of sports car company Group Lotus, in which Chinese carmaker Zhejiang Geely Holding Group owns a majority stake
- Lotus Tech will be merged with the SPAC L Catterton Asia Acquisition Corp, which went public in 2021 and raised US$250 million
Lotus Technology, a luxury electric vehicle (EV) maker, will gain a Nasdaq listing via a merger with a special purpose acquisition company (SPAC), boosting its plan to tap an accelerated electrification drive in the global automotive industry.
SPACs refer to shell companies that raise funds in an initial public offering with the aim of buying a private company. For the company being acquired, the merger is an alternative way to go public over a traditional listing.
Lotus Tech will be merged with the SPAC L Catterton Asia Acquisition Corp, which went public in 2021 and raised US$250 million.
“This is an exciting time for Lotus Tech as we work towards delivering our first fully electric hyper SUV (sport-utility vehicle), applying our innovation and engineering expertise to meet the rising global demand for luxury EVs,” Feng Qingfeng, CEO of Lotus Tech said in the statement.
“We believe the proposed business combination and listing will help position Lotus Tech as a leading global luxury EV company … accelerate our growth, and importantly, further our mission to steer the industry towards a more sustainable future.”