Lutes Technology and LCAA have reached a merger agreement that will be listed on NASDAQ after the merger.
On February 1, according to foreign media reports, in a filing with the US Securities and Exchange Commission, sports car manufacturer Lutes Technology disclosed that they had reached a final merger agreement with L Catterton Asia Acquisition Corp (LCAA), a special purpose company listed on Nasdaq.
According to the filings, the combined new company of the two companies is valued at about $5.54 billion (currently about 37.45 billion yuan), taking into account the $288 million in cash in the LCAA trust account (assuming that none of LCAA's public shareholders choose to redeem their shares).
Lutes Technology said in a filing that it and the board of directors of LCAA had approved the merger agreement between the two companies and was expected to complete the final merger later this year, but that the deal would need to be approved by shareholders of both companies and other conditions in the merger agreement would be met.
If approved by the shareholders of the two companies and merged smoothly, the new company after the merger will still be called "Lutes Technology" and will be headquartered in Wuhan. After the merger, the common shares of the new company are expected to be traded on Nasdaq under the symbol "LOT".
Lutes is a world-famous luxury sports car and racing brand, which produced their first car in 1948 and has a history of more than 70 years in the automotive field. On June 23, 2017, Zhejiang Geely holding Group signed a final agreement with Malaysia's DRB-HICOM Group to acquire 51% of Lutes' shares.
In filings with the Securities and Exchange Commission, Lutes Technology also disclosed that shareholders, including Geely Holdings, Etika and Xerox Capital, are expected to retain their shares, and existing shareholders such as Geely Holdings own about 89.7% of the combined company if LCAA's public shareholders do not redeem their shares.
LCAA is not long old and will only go public in 2021, but he is backed by luxury giant LVMH, and it is reported that LVMH and its owner, the Arnault family, hold a 40 per cent stake.
In the context of the vigorous development of electric vehicles in the global automobile industry, Lutes Technology is also investing heavily. Their electric SUV model, Eletre, is scheduled to be delivered domestically in the first quarter and in the UK and the European Union later at the end of the year. They also plan to expand to the United States and other countries.
