-
Important news
-
News
-
Shenzhen
-
China
-
World
-
Opinion
-
Sports
-
Kaleidoscope
-
Photos
-
Business
-
Markets
-
Business/Markets
-
World Economy
-
Speak Shenzhen
-
Health
-
Leisure
-
Culture
-
Travel
-
Entertainment
-
Digital Paper
-
In-Depth
-
Weekend
-
Newsmaker
-
Lifestyle
-
Diversions
-
Movies
-
Hotels and Food
-
Special Report
-
Yes Teens!
-
News Picks
-
Tech and Science
-
Glamour
-
Campus
-
Budding Writers
-
Fun
-
Qianhai
-
Advertorial
-
CHTF Special
-
Futian Today
在线翻译:
szdaily -> Markets -> 
EV startup Byton explores listing via SPAC deal
    2021-02-11  08:53    Shenzhen Daily

DOMESTIC electric vehicle (EV) maker Byton, backed by Apple assembler Foxconn, is in talks to go public through a merger with a special-purpose acquisition company (SPAC), people familiar with the matter said.

Byton, whose key shareholders also include automaker FAW Group and EV battery maker CATL, is in talks with potential SPAC companies and investors about the listing and plans to go public as early as this year, two sources said.

Byton was launched in 2017 by Future Mobility Corp., a company co-founded by former BMW and Nissan Motor executives. But it has been facing cash flow problems since 2019 as investors were cautious ploughing money in a crowded sector when EV sales growth was slowing in the world’s biggest car market.

The embattled company was building a car factory in the eastern city of Nanjing but suspended the endeavour in July to conduct a reorganization of the firm.

Last month, Byton sealed a deal to start making electric sport-utility vehicles (SUVs) with Foxconn and the Nanjing Economic and Technological Development Zone in 2022.

As part of the agreement, Foxconn will invest US$200 million into the SUV research and production project and will help build a supply chain for the EV production that aims to lower car manufacturing costs, the sources said.

Byton declined to comment.

“The company is currently focusing on the optimization of the supply chain manufacturing of Byton’s new energy vehicles, and will not comment on other market rumors,” Foxconn, formally Hon Hai Precision Industry Co., said in a statement.

A SPAC is a shell company that raises money through an initial public offering to buy an operating entity, typically within two years.

SPACs have emerged as a quick route to the stock market for companies, particularly auto technology firms, and have proven popular with investors seeking similar benefits to that of Tesla Inc.’s high stock valuation.

(SD-Agencies)

深圳报业集团版权所有, 未经授权禁止复制; Copyright 2010-2020, All Rights Reserved.
Shenzhen Daily E-mail:szdaily@126.com