According to foreign media reports, Chinese electric vehicle manufacturer Aichi Motors will be listed through a merger with American special purpose acquisition company Hudson Acquisition Corp.
The transaction values the company at approximately US$400 million.
Aichi Motors and Hudson Acquisition Corp.
said the merger is expected to be completed by the end of this year.
Aichi Automobile was founded in 2017 with investors including technology giant Tencent, online ride-hailing group Didi and battery manufacturer Ningde Times.
Last summer, as China’s fierce electric vehicle price war squeezed Aichi Motors ‘profit margins, the company’s factory in Shangrao was forced to suspend production, and the sustainability of its operations and business was at risk.
Therefore, this transaction is crucial to Aichi Motors.
Photo source: Aichi Motors, in fact, before encountering financial difficulties, Aichi Motors had sold its U5 and U6 electric vehicles in 16 European markets, and its factory in Shangrao can produce 300,000 electric vehicles every year.
This means that Aichi Motors has ready-made products and businesses, but it is difficult to afford the cost of expanding production.
, For the past few months, Aichi Motors has been negotiating with investors to restart production of existing models and plans to develop an affordable new model that will be sold only to the European market in the short term.
Alexander Klose, managing director of Aichi Motors Europe, said in a statement issued on the evening of May 14:”The strategic positioning of the combined company will be to make full use of our vision and resources in the European electric vehicle market.
“, According to a source familiar with Aichi Motors ‘plans, after a backdoor listing in the United States, the company’s headquarters will be located in Europe and will be responsible for sales, marketing and finance, while production, procurement and research and development will still be mainly carried out in China.
A few days before the news that Aichi will go public in the United States, another Chinese smart electric vehicle manufacturer, Gekrypton, has completed its listing on the New York Stock Exchange, raising approximately US$441 million, making it the largest IPO in the United States since October 2021.
Chinese company.
On the first day of listing, Gekrypton’s share price surged 35%, which also boosted confidence in subsequent listings of Chinese companies in the United States.
Return to the first electric network home page>,.
