Samvardhana Motherson to Buy 11% of Israel's REE Automotive for $15M
19 Sep 2024
2 Min Read
CW Team
Auto components major Samvardhana Motherson International that it would acquire an 11 per cent stake in Israel's REE Automotive for up to $15 million. The company, through its wholly-owned subsidiary MSSL Consolidated Inc, plans to subscribe to up to 3,639,010 Class A ordinary shares of REE Automotive.
According to the regulatory filing, the shares will be priced at $4.122 each, which will translate to an 11 per cent ownership in REE Automotive Ltd on a fully-diluted basis.
REE Automotive is noted for its automotive technology, focusing on the design, development, and integration of various vehicle components into modular platforms specifically for commercial electric vehicles. The company has manufacturing facilities in Coventry, UK, and Austin, US. It has developed a technology known as "REEcorner," which integrates essential vehicle systems鈥攕uch as steering, brakes, suspension, and powertrain control鈥攊nto a single compact module. This technology is protected by a portfolio of 175 patents, both registered and pending globally.
As part of the deal, Samvardhana Motherson International will also enter into a supply chain management agreement with REE Automotive to expedite industrialisation within a mutually beneficial commercial framework. Additionally, the companies will collaborate on manufacturing components and integrating the "REEcorner" module and platform assembly to support full vehicle assembly, including 'P7 electric' trucks in the US. The transaction is expected to be completed within 30 days, contingent upon the satisfactory completion of all conditions precedent.
Auto components major Samvardhana Motherson International that it would acquire an 11 per cent stake in Israel's REE Automotive for up to $15 million. The company, through its wholly-owned subsidiary MSSL Consolidated Inc, plans to subscribe to up to 3,639,010 Class A ordinary shares of REE Automotive.
According to the regulatory filing, the shares will be priced at $4.122 each, which will translate to an 11 per cent ownership in REE Automotive Ltd on a fully-diluted basis.
REE Automotive is noted for its automotive technology, focusing on the design, development, and integration of various vehicle components into modular platforms specifically for commercial electric vehicles. The company has manufacturing facilities in Coventry, UK, and Austin, US. It has developed a technology known as REEcorner, which integrates essential vehicle systems鈥攕uch as steering, brakes, suspension, and powertrain control鈥攊nto a single compact module. This technology is protected by a portfolio of 175 patents, both registered and pending globally.
As part of the deal, Samvardhana Motherson International will also enter into a supply chain management agreement with REE Automotive to expedite industrialisation within a mutually beneficial commercial framework. Additionally, the companies will collaborate on manufacturing components and integrating the REEcorner module and platform assembly to support full vehicle assembly, including 'P7 electric' trucks in the US. The transaction is expected to be completed within 30 days, contingent upon the satisfactory completion of all conditions precedent.
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