Syed Mokhtar-linked Lotus To List EV Unit In The US

The luxury electric vehicle (EV) division of sports car manufacturer Lotus, in which tycoon Tan Sri Syed Mokhtar Albukhary owns a 49% stake through Etika Automotive Sdn Bhd, is preparing to list in the US. The listing exercise will be carried out through a merger between Lotus Tech and special purpose acquisition firm L Catterton Asia Acquisition Corp, according to Lotus Technology Inc, the luxury EV division of Lotus (LCAA).

According to a statement released on Tuesday by Lotus Tech, the merger will value the combined company at US$5.4 billion after deducting the US$288 million cash held in LCAA's trust account. It stated that all of its current equity investors, including Zhejiang Geely Holding Group, Etika, and NIO Capital, are anticipated to maintain their stakes in the combined company, owning a combined 89.7% of it. The remaining 51% stake in Lotus is owned by Geely.

In its Jan. 23–29 issue, The Edge Malaysia reported that Syed Mokhtar was also considering conducting a strategic review of his businesses, which could include the possibility of privatising DRB–Hicom Bhd, and that Geely was considering a listing exercise. The combined company will be led by the same executive team, including CEO Qingfeng Feng, according to a statement released by Lotus Tech on Tuesday. The company plans to introduce its first electric SUV in the first quarter of this year.

The corporate exercise is being advised financially by Deutsche Bank, and the international legal counsel is Skadden, Arps, Slate, Meagher & Flom.