Lotus Technology to Acquire 51% Equity Interest of Lotus Advance Technologies and Integrate All Business under Lotus Brand
Rhea-AI Summary
Lotus Technology (Nasdaq: LOT) announced that Geely has exercised its put option to sell its 51% equity stake in Lotus Advance Technologies to Lotus Tech. The transaction, announced on April 16, 2025, will be executed through a non-cash share exchange.
The acquisition includes Lotus UK's sportscar and hypercar manufacturing operations, along with Lotus Engineering's consultancy services. The deal's completion is expected by 2025, subject to regulatory approvals. The put option was exercisable after Lotus UK exceeded 5,000 vehicle sales in 2024.
The transaction pricing is based on 1.15x Lotus UK's 2024 revenue plus cash minus debt, with Lotus Tech issuing new shares at $10 per share as consideration. This strategic move aims to consolidate all Lotus brand operations under one entity, potentially enhancing operational synergies and brand equity.
Positive
- Consolidation of all Lotus brand operations under single control
- Acquisition includes valuable manufacturing and engineering consulting operations
- Non-cash transaction structure preserves cash resources
- Lotus UK achieved over 5,000 vehicle sales in 2024
Negative
- Share issuance will dilute existing shareholders
- Transaction subject to regulatory approval risks
- Additional operational integration costs expected
News Market Reaction 1 Alert
On the day this news was published, LOT declined 3.32%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
NEW YORK, April 16, 2025 (GLOBE NEWSWIRE) -- Lotus Technology Inc. (“Lotus Tech” or the “Company”) (Nasdaq: LOT), a leading global intelligent and luxury mobility provider, today announced that Geely International (Hong Kong) Limited (“Geely”) exercised its put option on April 14, 2025, requiring us to purchase
Lotus UK controls the manufacturing operations for Lotus’ sportscars and hyper cars, and Lotus Engineering which provides comprehensive consultancy services to many of the OEMs and Tier 1 suppliers around the world.
Pursuant to the exercise of put option from Geely, the Company expects to acquire
The acquisition is expected to be completed by 2025, subject to potential regulatory approvals.
In conjunction with the business combination between the Company and L Catterton Asia Acquisition Corp, a special purpose acquisition company affiliated with L Catterton, a leading global consumer-focused investment firm, the Company and Lotus UK entered into a Put Option Agreement with each of Geely and Etika. Pursuant to these agreements, each of Geely and Etika was granted the right to require the Company to acquire its equity interest in Lotus UK at a pre-agreed pricing method1 and upon satisfaction of the condition (“Put Option Exercise Condition”) that the total number of vehicles sold by Lotus UK and its subsidiaries shall exceed 5,000 in 2024, with the exercise of such options by Geely and Etika not cross-conditioned on one another. As of December 31, 2024, the Put Option Exercise Condition had been satisfied.
Mr. Qingfeng Feng, Chief Executive Officers, said: "This acquisition marks a critical milestone in our strategic journey to fully integrate all businesses under the Lotus brand, which will strengthen brand equity and enhance our operational flexibility and internal synergies. We are confident that the transaction will create substantial long-term value for our shareholders.”
Note 1: Pursuant to the agreement, the Company will issue new shares valued at
About Lotus Technology Inc.
Lotus Technology Inc. has operations across the UK, the EU and China. The Company is dedicated to delivering luxury lifestyle battery electric vehicles, with a focus on world-class R&D in next-generation automobility technologies such as electrification, digitalisation and more. For more information about Lotus Technology Inc., please visit www.group-lotus.com.
Forward-Looking Statements
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential”, “forecast”, “plan”, “seek”, “future”, “propose” or “continue”, or the negatives of these terms or variations of them or similar terminology although not all forward-looking statements contain such terminology. Forward-looking statements involve inherent risks and uncertainties, including those identified under the heading “Risk Factors” in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Lotus Tech undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Contact Information
For investor inquiries
ir@group-lotus.com
FAQ
What is the structure of Lotus Technology's acquisition of Lotus Advance Technologies?
When will Lotus Technology (LOT) complete the acquisition of Lotus UK?
What assets will Lotus Technology gain from the Lotus UK acquisition?
What was the sales threshold requirement for the LOT acquisition put option?
