X-energy to go public via $2 billion blank-check deal

Ares Acquisition

06/12/2022 12:10

Dec 6 (Reuters) - X-energy has agreed to merge with
blank-check firm Ares Acquisition Corporation  AAC.N  in a deal
valued at around $2 billion, the companies said on Tuesday.
    Founded in 2009, X-energy develops small modular nuclear
reactors and fuel technology for clean energy generation.
    The deal is expected to generate cash proceeds of about $1
billion for X-energy from the trust account of the
special-purpose acquisition company (SPAC) Ares, assuming no
redemptions. Institutional and strategic investors have also
invested or committed $120 million in financing as part of the
deal.
    Climate awareness and investor interest in sustainable
business practices have surged this year with money managers
looking to factor in environmental social governance (ESG)
policies as impact-investing gains momentum.
    Still, the SPAC market has been on a downtrend slide amid
increased regulatory scrutiny and poor stock performance of
firms that did such deals.
    The De-SPAC Index  .DESPACTR  that tracks a basket of
companies that have listed through SPAC mergers is down roughly
70% so far this year.
    A SPAC is a listed shell company that merges with a private
company, taking it public in the process.
    After the deal closes, which is expected in the second
quarter of 2023, the combined entity will be named X-Energy Inc.
 (Reporting by Manya Saini in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Manya.Saini@thomsonreuters.com;))