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NEW YORK - Isdera Group Limited announced Monday it has entered into a merger agreement with UY Scuti Acquisition Corp. (NASDAQ:UYSC), a special purpose acquisition company, in a transaction that would take the Chinese automotive design company public. UY Scuti, currently trading at $10.09 and near its 52-week high, has a market capitalization of $77.2 million. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.
The deal, signed on July 18, will result in Isdera Group becoming a wholly-owned subsidiary of a new publicly listed entity expected to trade on the Nasdaq Capital Market under a new ticker symbol.
Isdera Group operates through its subsidiary Xinghui Automotive Technology, which designs automobiles in China. The company acquired the German supercar brand ISDERA and plans to expand it into both combustion-engine and electric supercar segments.
Under the agreement terms, UY Scuti shareholders will receive ordinary shares in the new combined entity. Certain Isdera Group shareholders will be subject to 180-day lock-up agreements following the transaction’s closing.
The merger has received unanimous approval from both companies’ boards of directors but still requires regulatory approvals, shareholder consent from both companies, SEC effectiveness of the registration statement, and Nasdaq approval of the listing application.
Torres & Zheng at Law, JunHe LLP, and Harney Westwood & Riegels are serving as legal advisors to Isdera Group, while Becker & Poliakoff, Beijing Dacheng Law Offices, and Appleby are advising UY Scuti. Chain Stone Capital Limited is acting as financial advisor to Isdera Group.
The transaction announcement was made in a press release statement, which noted that Isdera Group aims to leverage its design capabilities in the "high-growth and high-margin supercar market" through its heritage-driven brand.
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