Polestar from the Volvo Car Group is preparing to acquire a special-purpose company, or SPAC, Gores Guggenheim. He stated it Wall Street Journal with reference to persons familiar with the matter. An agreement to sell Polestar shares on the stock exchange would value the company at $ 21 billion.
SPAC stands for “special purpose acquisition company”. It is a company established with the intention of public trading on the stock exchange. The popularity of this form of investment in the world is growing significantly. It has become more widely known over the last few years, and by 2020, about half of all IPOs had taken place in this form. In 2021, the trend continues.
Polestar belongs to the Volvo Car Group brand, which is controlled by the Chinese carmaker Zhejiang Geely Holding Group. Existing investors, including actor Leonardo DiCaprio, will be given the opportunity to make a new investment of $ 250 million under the SPAC agreement.
Polestar is currently creating a structure for life cycle assessment of electric vehicles, where the process of production, sale and end of life will be so transparent and traceable that the company can create carbon-neutral vehicles, writes the server in its commentary. techcrunch.com.
In June, the carmaker announced plans to produce its first SUV Polestar 3 in the United States. It should start in 2022 and needs money from investors to start. The agreement with the SPAC company would also help the carmaker to enter the American market faster, where it could compete with Tesla.
But Polestar has yet to strengthen his credibility in order to succeed in the competition. Last year, due to defective components, he had to withdraw all manufactured cars for repair.
Gores Guggenheim raised $ 800 million in March to subscribe for shares, and Bloomberg announced that it had begun negotiations with Polestar in July.