Polestar says it will merge with Alec Gores blank-check company and Guggenheim Partners to list on the Nasdaq Stock Exchange under the ticker symbol “PSNY”. The deal gives the Swedish electric car manufacturer an enterprise value of $20 billion, as per the press release on Monday.
The agreement includes about $800 million in cash proceeds from Gores Guggenheim and $250 million of private investment in public equity (PIPE) from top-tier institutional investors. Polestar will be renamed to Polestar Automotive Holding UK Ltd upon completion of the transaction.
Polestar CEO Ingenlath’s comments on CNBC’s “Squawk Box”
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According to CEO Thomas Ingenlath of Polestar, a SPAC merger ensured “support for the company’s growth plan over the next three years”. Commenting further on why he chose to go public via a SPAC merger, he said on CNBC’s “Squawk Box”:
It was about speed, efficiency, and a flexible way to go public. And of course, finding the right partner with Alec and his team, having the trust that they are the people that have the experience to do this successfully.
Alec Gores is “excited” about the SPAC merger
Alec Gores, founder and CEO of Gores Group, also revealed in the same interview with CNBC that he had his eyes on Polestar since the start of the year. He said:
We’ve been looking at it since the beginning of the year. It’s a very unique company, it’s a real unicorn, and we’re super excited about it.
So far, Polestar has launched two electric cars and plans on launching three more, one each over the next three years. Polestar counts notable names like the Oscar-winning Hollywood actor Leonardo DiCaprio as its investors.
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