By Michael Elkins
Lotus Technology announced on Tuesday that the Luxury electric vehicle startup will go public in the United States via a merger with special purpose acquisition company L Catterton Asia Acquisition Corp (NASDAQ:LCAA) in a deal that will value the combined group at $5.4 billion.
Lotus Tech is a luxury electric vehicle maker division of sports car brand Group Lotus, which is in turn owned jointly by Chinese automaker Geely (HK:0175) and Malaysia's Etika Automotive.
Lotus Tech's existing shareholders include Geely, Etika and NIO Capital, an investment firm founded by the CEO of Chinese electric vehicle maker NIO Inc (HK:9866). The shareholders will retain their interests in the company and own 89.7% of it following the deal. The current leadership will also stay on and the company's shares will list on the Nasdaq under the ticker symbol "LOT"
"We expect the partnership to provide significant support as Lotus Tech expands globally, with promising brand collaboration and strategic partnership potential worldwide," Lotus Tech's Chief Executive Officer Feng Qingfeng said.
Deutsche Bank and Credit Suisse were among the advisors on the deal.
Shares of LCAA are up 0.79% in pre-market trading on Tuesday.