Vietnam EV maker VinFast to list in US through SPAC deal

Vietnam EV maker VinFast to list in US through SPAC deal

Vietnamese automobile manufacturer VinFast has announced a business combination agreement with a publicly traded special purpose acquisition company (SPAC), Black Spade Acquisition Co, to go public in the US.

According to an announcement, the business combination values VinFast at an enterprise value of approximately $27 billion and an equity value of $23 billion, not including cash from BSAQ’s approximately $169 million of cash in trust.

After the transaction, which is expected to close in the second half of 2023, existing shareholders of VinFast will hold approximately 99% shares of the combined company.

“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,” said Thuy Le, Global CEO of VinFast.

“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,” said Dennis Tam, Chairman and co-CEO, Black Spade Acquisition Co.

Last month, VinFast said it had received a fresh round of funding pledges worth $2.5 billion from its parent company Vingroup and from billionaire Pham Nhat Vuong’s own pocket for its future development.

In December last year, the automaker officially filed for an initial public offering in New York in a move that, if successful, would make it the only Vietnamese company listed in the US.

VinFast was established in 2017 and began manufacturing conventional cars in 2019 before switching to all electrics.

The company operates a state-of-the-art automotive manufacturing complex in Hai Phong that boasts up to 90% manufacturing automation and an annual production capacity of up to 300,000 units in phase 1.

It recently crossed an important milestone on the journey to becoming a recognised global EV brand with the first VF 8 EVs exported to North America earlier this year.

Black Spade, listed on the NYSE, was founded by Black Spade Capital, which runs a global portfolio consisting of a wide spectrum of cross-border investments, and consistently seeks to add new investment projects and opportunities to its portfolio.

Edited by: Joymitra Rai

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