Electric Performance Car Company Polestar Closes Merger with SPAC.
MANews-(C)2009-2022
Swedish electric performance car company Polestar Performance AB and its affiliates, and US-based special purpose acquisition company Gores Guggenheim, Inc. (NASDAQ: GGPI), formed by affiliates of The Gores Group and Guggenheim Capital, LLC, have closed a business combination first reported last September, the companies said.
With closing of the proposed business combination, the combined company will be held by a new public company that will be named Polestar Automotive Holding UK Ltd., which is expected to be listed on NASDAQ under the ticker symbol "PSNY."
The transaction implies an enterprise value of approximately USD 20bn.
Founded in 2017 by Volvo Cars and Zhejiang Geely Holding, Polestar is a global pure play, premium electric performance vehicle manufacturer. The company's two electric performance cars, Polestar 1 and Polestar 2, are currently on roads across Europe, North America and Asia.
In addition, the company has plans to launch three new models by 2024. Polestar delivered approximately 10,000 vehicles in 2020 and expects to sell approximately 290,000 vehicles per year by 2025.
Existing investors include Volvo Car Group and affiliates of Geely chairman Eric Li, and actor and activist Leonardo DiCaprio, amongst others.
Polestar has drawn extensively on the industrial heritage, knowledge and market infrastructure of Volvo Cars. Polestar's combination of deep automotive expertise, paired with its cutting-edge technologies and agile, entrepreneurial culture, underpins the company's potential for growth and success.
Sustainability is at the core of Polestar's business model, and the company has ambitious industry-leading targets, including the goals to develop a truly climate-neutral car by 2030 and to be the most transparent pure play electric vehicle company.
The transaction implies an enterprise value of approximately USD 20bn for the combined company, representing approximately 3.0x 2023E revenue and 1.5x 2024E revenue.
Current Polestar equity holders will retain approximately 94% ownership in Polestar and roll 100% of their equity interests into the pro forma company.
Concurrently with the consummation of the proposed business combination, investors have committed to purchase USD 250m of securities of the combined company.
The 250 m PIPE investment is anchored by top-tier institutional investors.
Assuming no share redemptions by the public stockholders of Gores Guggenheim, approximately USD 800m in cash...
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