20.2 C
New York
Saturday, June 25, 2022

Gores Guggenheim, Inc. shares on a Rise as GGPI goes into Agreement with a Premium EV Maker

A special purpose acquisition company (SPAC), Gores Guggenheim, Inc. (GGPI), set to merge with Polestar. Polestar is a famous electric-carmaker owned by Zhejiang Geely Holding Group Co. and controlled by Volvo Car AB. 

The shares of Gores Guggenheim, Inc. (GGPI) are trading upward in the current market on 27 September 2021. Investors are amused by the merger deal between Gores and Polestar. The following deal is being valued at around $20 billion.


3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free.

Sponsored


The merger agreement goes into consideration with the Polestar Performance AB and its affiliates (Polestar) and Gores Guggenheim. Both the companies have entered into a definitive business combination agreement. As per the deal, upon the closing of this business combination, the combined company will be given a new public name and relisted on the Nasdaq exchange. The new public company will be named Polestar Automotive Holding UK Limited, under the ticker symbol PSNY.

Gores Guggenheim is a SPAC formed by affiliates of The Gores Group and Guggenheim Capital. While Polestar is a globally recognized premium EV manufacturer owned by Volvo Cars and Zhejiang Geely Holding. The EV maker was founded in 2017 and has made a name with its two award-winning electric performance cars, Polestar 1 and Polestar 2. Polestar is a rival to Tesla Inc. (TSLA) and Lucid Motors (LCID).

Moreover, Polestar intends to launch three new models by 2024. The company manufactured and delivered around 10,000 vehicles in 2020 and expects the tally to reach 290,000 per year by 2025.

As soon as the deal was announced, GGPI stock has taken the bullish move. It seems to be a good deal and investors anticipate things to go in the right way. However, the deal is yet to be concluded and the terms or timing of a final agreement could still change.

Nonetheless, the combined company good be a big deal if it goes public. It is expected to be a valuable business worth approximately $20 billion including debt. As confirmed by the sources of Bloomberg, the agreement will bring in about $800 million of cash from Gores Guggenheim and $250 million from institutional investors.

The expected transaction value of $20 billion represents around 3x 2023E revenue and 1.5x 2024E revenue. As per the initial reports, the current equity holders of Polestar will retain 94% ownership in the company and roll 100% of their equity interests into the pro forma company.

In the following agreement, Citi is acting as an exclusive financial advisor to Polestar. While, Deutsche Bank Securities, Morgan Stanley, and Guggenheim Securities, are the prominent financial advisors for Gores Guggenheim, Inc. (GGPI).

Latest news

Related news

LEAVE A REPLY

Please enter your comment!
Please enter your name here

2839

SPECIAL GIFT

WE HAVE A GIFT FOR YOU

Download Free eBook For

The 5 Best Growth Stocks 2022

100% free. stop anytime no spam