EVBox is going public via a merger with special purpose acquisition company (SPAC) TPG Pace (NYSE:TPGY) and TPGY stock is soaring as a result.
Here’s what potential investors need to know about the EVBox SPAC merger with TPG Pace.
- EVBox is a subsidiary of Engie New Business S.A.S., which is a subsidiary of Engie S.A.
- Engie S.A. is a low-carbon energy services company with a focus on reducing carbon production around the world.
- EVBox fits into its goals as it’s an electric vehicle (EV) charging company.
- The EV charging company is the largest in Europe and has a network of more than 190,000 charge ports.
- TPG Pace is a SPAC company created by the investment firm TPG.
- The company’s goal was to find a high-growth company to merge with strong environmental, social, and governance principles.
- One benefit of the SPAC merger is that EVBox will get continued support from TPG.
- The merger will have TPG Pace acquiring EVBox with a mix of cash and equity.
- That includes $225 million from a public investment in private equity (PIPE), $100 million from TPG Pace’s purchase agreement, and another $350 million in cash from its trust account.
- It’s worth noting that $180 million of this will go to Engie S.A. as a cash payment.
- In total, EVBOX is expected to have more than $425 million in gross proceeds to work with.
- The company plans to use these funds to expand its business.
- That includes growing its network in Europe and North America.
- The SPAC merger implies an enterprise value of $969 million for EVBox.
- When the transaction is complete, it will set the pro-forma equity value of the company at about $1.394 billion.
- The deal will also have TPG Pace changing its name to EVBox Group once it is complete.
- It will also result in TPGY stock changing to EVB stock but it will still trade on the New York Stock Exchange.
- The deal is set to close during the first quarter of 2021.
TPGY stock was up 109.5% as of Friday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.