EV maker Polestar to go public with $20 bln SPAC

Electric-car maker Polestar is to go public.

The Swedish company is to merge with a blank-check firm backed by billionaire Alec Gores and investment bank Guggenheim Partners.

It's aiming at a valuation of $20 billion including debt.

Polestar's listing plan comes as automakers shift their focus to greener vehicles, amid rising pressure from lawmakers and investors.

The deal with Gores Guggenheim will likely include cash proceeds of around $800 million.

And include a PIPE, or private investment in public equity, of $250 million from top-tier institutional investors.

Polestar is backed by Volvo Cars and its parent, Chinese automaker Geely.

But it also counts Hollywood actor Leonardo DiCaprio among its investors.

The premium EV maker's offering includes two models - a hybrid performance car known as Polestar 1.

And a fully electric Polestar 2.

The company delivered about 10,000 vehicle last year.

It says it expects to sell about 290,000 vehicles per year by 2025 and launch three new models by 2024.

Under the deal, current equity holders of Polestar will retain about 94% ownership.

Post merger, the combined company will be named Polestar Automotive Holding UK Ltd.

And will trade on the Nasdaq.

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