Polestar, the global electric performance car company, signed an agreement to be publicly listed through combination with Gores Guggenheim (NASDAQ:GGPI).
Post-closing, the combined company will be held by a new public company named Polestar Automotive Holding UK Limited, expected to be listed on Nasdaq under the ticker symbol "PSNY".
The transaction implies an enterprise value of ~$20 billion for the combined company, representing ~3.0x 2023E revenue and 1.5x 2024E revenue.
Current Polestar equity holders will retain ~94% ownership in Polestar and roll 100% of their equity interests into the pro forma company.
Concurrently with the consummation of the proposed business combination, investors have committed to purchase $250 million of securities of the combined company (the 'PIPE investment').
Assuming no share redemptions by the public stockholders of Gores Guggenheim, ~$800 million in cash currently held in Gores Guggenheim's trust account, together with ~$250 million PIPE investment proceeds, is expected to be used to help fund significant investment in new models and the expansion of operations and markets.
Both Companies board unanimously approves the proposed business combination and is expected to close in 1H22, subject to approval by Gores Guggenheim's stockholders and other customary closing conditions.