RMG Acquisition Corporation II (NASDAQ:RMGB) stock is on its way up Wednesday after announcing plans for a special purpose acquisition company (SPAC) merger with ReNew Power.

Here’s everything investors need to know about RMGB and its SPAC merger deal with ReNew Power.

• RMG II is a blank-check company created to take a private company public via a SPAC merger.
• It went public late last year through an initial public offering (IPO) that raised $345 million.
• The company is sponsored and led by management team Jim Carpenter, Bob Mancini, and Phil Kassin.
• ReNew Power is India’s leading renewable energy independent power producer (IPP) in terms of capacity.
• The company is also the 12th largest global IPP by generation capacity.
• RMG II’s SPAC merger with ReNew Power values the combined company at $4.4 billion.

• It will also provide it with $1.2 billion in gross cash proceeds.
• This comes from the $345 million raised by RMBG during its IPO and an $855 million private investment in public equity (PIPE).
• When the deal closes, ReNew Power’s Board of Directors will include a mix of its own members and those from the RMG II Board.
• The deal needs to complete customary closing conditions before it is complete.
• That includes getting approval from shareholders and regulators.
• So long as there are no issues in doing this, the two companies expect the SPAC merger to close in the second quarter of 2021.

RMGB stock was up 3.8% as of Wednesday afternoon.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.