X-energy lowers SPAC deal value to $1.8 billion

Ares Acquisition

12/06/2023 12:17

June 12 (Reuters) - X-energy Reactor Co LLC, which laid
out plans to go public by merging with a blank-check firm last
year, lowered its deal value on Monday to $1.8 billion from
nearly $2.1 billion.
    The company, which develops small modular nuclear reactors
and fuel technology for clean energy generation, in December
agreed to merge with SPAC Ares Acquisition Corp  AAC.N .
    A special purpose acquisition company, or SPAC, is a
publicly listed shell company that raises funds with the
intention of merging with a private company within two years of
floating its shares. The private firm goes public through the
merger.
    The amended deal establishes "a more attractive entry point
for investors," the companies said on Monday.
    X-energy updated some costs for its advanced reactor
demonstration program following higher costs for construction
materials and labor, increasing interest rates and supply chain
constraints for equipment.
    The change in deal value underscores the hurdles companies
face in raising capital and defending higher valuations amid
worries of a global economic slowdown.

 (Reporting by Mehnaz Yasmin in Bengaluru; Editing by Shounak
Dasgupta)
 ((Mehnaz.Yasmin@thomsonreuters.com))