Chinese Auto Giant Geely Explores SPAC Deals
One of China's largest car makers, Zhejiang Geely Holding Group Co., is making plans to tap into the surging market for SPACs.
The multinational company, which owns Geely Automobile Holdings Ltd., Volvo Car Group and several other electric-vehicle brands, is in talks to sponsor a special-purpose acquisition company that could raise $300 million in a Nasdaq initial public offering.
In addition, the Hangzhou-based group is considering taking one of its European electric-vehicle subsidiaries public by merging it with another SPAC and boosting its valuation sharply, to as much as $40 billion.
More of Asia's tycoons and investment firms have capitalized on the boom in SPACs on U.S. exchanges this year.
Geely, which is controlled by its billionaire chairman and founder Li Shufu, is considering doing the same. The group is discussing creating a SPAC with its Hong Kong-based venture arm, GLY Capital Management. Mr. Li would sit on the new company's board with two other Geely representatives and one from Volvo.
Polestar, a Swedish electric-vehicle maker owned by Volvo Cars and Geely, is considering going public in the U.S. through a different SPAC in a transaction that could value the business at as much as $40 billion. If achieved, it would be one of the most valuable SPAC mergers.