Chinese automaker Chijet to go public in U.S. via $2.6 bln SPAC merger (updated)

Trugolf Holdings

13/07/2022 11:31

(Adds proceeds, other details)
    July 13 (Reuters) - Chinese automaker Chijet Motor Co has
agreed to go public in the United States through a merger with a
blank-check vehicle Deep Medicine Acquisition Corp  DMAQ.O  in a
deal valued at $2.55 billion, the companies said on Wednesday.
    Chijet said it would use the proceeds of $127.8 million from
the deal to increase production capacity, develop its electric
vehicles and expand in Southeast Asia.
    The deal is expected to close by the end of the fourth
quarter, the companies said.
    Last year, Chinese regulators clamped down on overseas stock
listings, particularly after the New York debut of Didi Global.
However, some smaller startups from the country are reviving
U.S. listing plans by merging with special purpose acquisition
companies (SPACs).  urn:newsml:reuters.com:*:nL8N2V031G
    SPACs are firms with no business operations which merge with
a private company to take it public. 
    After a bumper 2020, the frenzy around these companies has
receded. Several SPAC mergers have been torpedoed by high
investor withdrawals and uncertain market conditions this year.
    

 (Reporting by Niket Nishant in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Niket.Nishant@thomsonreuters.com;))