Ford-backed battery maker Solid Power to go public via $1.2 bln SPAC deal (updated)
15/06/2021 12:24
(Adds transaction details, background, shares)
June 15 (Reuters) - Solid Power Inc, an electric-vehicle
battery maker backed by Ford Motor Co F.N and BMW BMWG.DE ,
said on Tuesday it would go public by merging with a blank-check
firm in a deal that values the combined entity at around $1.2
billion.
The company, which produces rechargeable batteries for
automobiles as well as mobile power markets, will have $600
million in cash after completing the merger with Decarbonization
Plus Acquisition Corp III DCRC.O .
That includes $165 million from private investors such as
Koch Strategic Platforms, Riverstone Energy Limited, Neuberger
Berman funds and Van Eck Associates Corporation.
Ford and BMW had last month participated in Solid Power's
$135 million early-stage financing round.
Shares of the special purpose acquisition company (SPAC)
were up 3.3% premarket.
SPACs are publicly listed shell companies that raise funds
intending to merge with private companies to take them public.
A string of electric-vehicle makers including Lucid Motors,
Fisker Inc FSR.O and Nikola Corp NKLA.O went public through
SPAC mergers or have announced plans for the same over the past
year. Volkswagen AG-backed battery maker QuantumScape Corp
QS.N went public through a blank-check merger in a $3.3
billion deal in 2020.
The transaction is expected to close in the fourth quarter,
after which Solid Power would be listed on the Nasdaq under the
new ticker symbol "SLDP".
Stifel, Nicolaus & Co Inc is serving as a financial adviser
to Solid Power, while Citigroup Global Markets Inc and J.P.
Morgan Securities LLC advised DCRC.
(Reporting by Sohini Podder in Bengaluru; Editing by
Ramakrishnan M.)
((sohini.podder@thomsonreuters.com;))