Vietnamese EVmaker VinFast is to list in the US through a merger with special purpose acquisition company (SPAC), it announced on Friday.
After the merger with Black Spade Acquisition Co (BSAQ), the new entity will boast an enterprise value of approximately $27 billion and an equity value of $23 billion, “assuming no BSAQ shareholders elect to have their Black Spade shares redeemed for cash as permitted,” VinFast and Black Spade said in a joint statement.
Madame Thuy Le, Global CEO of VinFast Auto, said: “VinFast has already demonstrated the ability to quickly reach international markets. The partnership with Black Spade and listing of VinFast in the US represents the perfect capital raising avenue for our future global ambitions and is also an important accomplishment for Vingroup.”
Dennis Tam, chairman and co-CEO of Black Spade Acquisition Co, said: “VinFast has demonstrated their execution excellence by building up a maximum production facility of up to 300,000 electric vehicles (EVs) a year and having a full range of beautifully designed high quality EVs, all within the span of a few years.
“With the support of Vingroup, one of the largest conglomerates in Vietnam, VinFast is very well positioned to take advantage of the EV lifestyle trend and we are very excited about the future potential growth of VinFast in Vietnam and globally.”
The transaction is expected to close in the second half of 2023, it said, adding existing shareholders of VinFast will hold approximately 99% shares of the combined company.
VinFast, which began to sell EVs in California this year, filed for an initial public offering in the US to list on the Nasdaq under ticker symbol “VFS” in December last year.
Black Spade Acquisition is a Hong Kong-based SPAC which listed on the NYSE in mid-July 2021 with a plan to merge, within two years, with a company ideally in the entertainment business, according to its website.
- Reuters with additional editing by Sean O’Meara
NOTE: The photo on this report was changed and further text added to update this news on May 13, 2023.