Lotus Tech secures $870 mln ahead of deal completion with L Catterton SPAC

Lotus Technology

28/11/2023 02:27

SINGAPORE, Nov 28 (Reuters) - Lotus Technology, the
luxury electric vehicle arm of sports car brand Lotus, said on
Tuesday it has secured $870 million in financing ahead of the
completion of its merger with blank check company L Catterton
Asia Acquisition (LCAA)  LCAA.O .
    All of the financing was secured based on a $5.5 billion
valuation, China-headquartered Lotus Technology said in a
statement.
    Investors will be issued public shares upon closing of the
business combination with LCAA, and result in Lotus Technology
having a free float of over 19%, excluding existing LCAA
shareholders, it said.
    The funds will be used to further advance development of
"next-generation automobility technologies, promote product
innovation, support the company's expansion of its global
distribution network, and for general corporate purposes", the
statement showed.
    Lotus Technology in January said it will go public in the
United States by merging with LCAA, a special purpose
acquisition company (SPAC) formed by affiliates of L Catterton,
an investment firm backed by luxury goods empire LVMH Louis
Vuitton Moet Hennessy  LVMH.PA .
    Lotus Technology is part of British sports car maker Lotus
Group which is in turn owned jointly by Chinese automaker Geely
 GEELY.UL  and Malaysia's Etika Automotive.

 (Reporting by Yantoultra Ngui; Editing by Christopher Cushing)
 ((Yantoultra.Ngui@thomsonreuters.com;))