Lotus Tech to acquire full ownership of Lotus UK

NEW YORK - Lotus Technology Inc. (Nasdaq:LOT) announced Tuesday that Etika Automotive Sdn Bhd has exercised its put option requiring Lotus Tech to purchase Etika’s 49% stake in Lotus Advance Technologies Sdn Bhd (Lotus UK). The company, currently valued at $303.61 million, appears undervalued according to InvestingPro analysis, though it faces significant challenges with weak gross profit margins and high price volatility.

This follows an April 14 announcement that Geely International (Hong Kong) Limited had exercised a similar put option for its stake in Lotus UK. Upon completion of both transactions, Lotus Tech will own 100% of Lotus UK through non-cash transactions at pre-agreed prices.

The acquisition will give Lotus Tech control over Lotus UK, which manages manufacturing operations for Lotus sportscars and hypercars, as well as Lotus Engineering, which provides consultancy services to automotive manufacturers and suppliers globally.

According to the company, the transactions stem from put option agreements signed in January 2023 in conjunction with Lotus Tech’s business combination with L Catterton Asia Acquisition Corp. These agreements granted both Geely HK and Etika the right to require Lotus Tech to acquire their equity interests in Lotus UK based on a pre-agreed pricing method if Lotus UK and its subsidiaries sold more than 5,000 vehicles in 2024.

The company stated this condition was satisfied as of December 31, 2024. Under the agreement terms, Lotus Tech will issue new shares valued at $10 per share as consideration for the transfer of Lotus UK shares.

The acquisition is expected to be completed by the end of 2025, subject to regulatory approvals. Lotus Tech indicated the strategic transaction will enable the company to integrate all businesses and operations under the Lotus brand.

This information is based on a press release statement from Lotus Technology Inc.

In other recent news, Lotus Technology Inc. has issued a senior convertible note valued at approximately $119 million to Geely International. This note, which matures in June 2026, provides Geely the option to convert the debt into either ordinary shares or American depositary shares of Lotus Technology. The issuance ranks senior to all other unsecured and unsubordinated debts of the company. Additionally, Lotus Technology is set to acquire a 51% equity interest in Lotus Advance Technologies Sdn Bhd from Geely International. This acquisition, expected to conclude by 2025, will allow Lotus Technology to consolidate financial results and control manufacturing operations of Lotus UK. In leadership news, Lotus Technology has appointed Mr. Daxue Wang as the new Chief Financial Officer and Ms. Catherine Cai as an independent director. These appointments follow the resignation of the previous CFO, Mr. Alexious Lee, who will remain on the board. These developments highlight significant strategic moves and leadership changes at Lotus Technology.

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