China’s $2 bln upstart-EV deal is very racy

Apollo Future Mobility

13/01/2023 04:45

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Katrina Hamlin
       HONG KONG, Jan 13 (Reuters Breakingviews) - After
failing to pull off an IPO, mass market-focused WM Motor is
reversing into smaller Hong Kong-listed Apollo Future Mobility,
which makes supercars but earns most of its revenue from
jewellery. The odd couple’s close shareholder ties at least rev
up the financial logic.    
    Full view will be published shortly.
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    CONTEXT NEWS
    Hong Kong-listed Apollo Future Mobility said on Jan. 12 that
it had agreed to buy Chinese electric-car maker WM Motor Global
for HK$15.9 billion ($2.02 billion). To fund the acquisition of
its larger peer, Apollo will issue 28.8 billion new shares at
HK$0.55 each. Apollo shares fell 8.6% and were trading at
HK$0.23 by market close on Jan. 12.
    WM Motor Global filed for a Hong Kong initial public
offering in May 2022, but the application lapsed in November.
Earlier, it explored a listing on the mainland STAR Board. WM
Motor Global’s owner, WM Motor Holdings, is the largest
shareholder in Apollo Future Mobility, and WM Motor founder
Freeman Shen sits on the latter’s board as co-chair.
 (Editing by Una Galani and Pranav Kiran)
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