By Dave Sebastian
A blank-check company formed by private-equity firm L Catterton is extending a deadline to complete a deal, after agreeing to take electric-vehicle maker Lotus Technology Inc. public.
L Catterton Asia Acquisition Corp. had been due to complete a deal by March 15 — 24 months after the closing of its initial public offering — or risk dissolution. The special-purpose acquisition company has given itself leeway to extend the deadline until March 15, 2024, according to the merger agreement it disclosed Tuesday.
L Catterton Asia Acquisition and Lotus Tech said they expect the deal to close in the second half of the year.
SPACs are shell companies that raise money from investors and list publicly, with the sole purpose of combining with a private company to take it public.
L Catterton Asia Acquisition’s board must approve an amendment to the SPAC charter before Feb. 15 so that it can extend the deal deadline to June 15 from March 15, the companies said. The SPAC’s board, at the request of the sponsor, can then extend the deadline on a monthly basis for up to nine times until March 15, 2024, they added.
The deal is among the largest recent SPAC transactions, as average merger values have fallen amid higher interest rates and a softening economy. L Catterton Asia Acquisition and Lotus Tech said they expect the combined company to be worth about $5.4 billion, including roughly $288 million in cash from the SPAC’s trust account.
Wuhan, China-based Lotus Tech makes luxury EVs under the British-founded Lotus brand. It joins other EV makers and suppliers in Asia that are rushing to capital markets to raise money, as they try to take advantage of a surge in demand for energy-efficient autos. Zhejiang Geely Holding Group, one of China’s largest car makers, is Lotus Tech’s majority owner.
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