Lotus's electric vehicle arm is to be listed in the US at a valuation of around US$5.4bn via a merger with a special purpose acquisition company (SPAC) backed by the world's richest man, Bernard Arnault.
The EV business, Lotus Technology, which is owned by Chinese firm Geely, will be combined with a US-listed SPAC named L Catterton Asia Acquisition Corp (LCAA), rather than being floated through a traditional initial public offering.
Geely, which also owns Volvo Cars, Polestar and electric black cab maker the London Electric Vehicle Company among many other brands, will retain 89.7% of Lotus Technology as part of the deal, which has seen it inject US$100mln into the company, alongside US$288mln put forward by LCAA.
The deal will “help position Lotus Tech as a leading global luxury EV company,” and brings “promising brand collaboration and strategic partnership potential worldwide,” said Lotus chief executive Qingfeng Feng.
Geely acquired part of Lotus in 2017 after taking a stake in original owner Malaysia Proton.
It subsequently invested US$3bn into the business and launched a series of new EVs, with plans to start production of luxury SUVs this year from its new Wuhan-based plant, which has an annual output capacity of 150,000 vehicles.
LCAA, meanwhile, is a product of L Catterton – a private equity group backed by Louis Vuitton Moet Hennessey owner Arnault, who has recently alternated with Elon Musk as the world's richest person.