VinFast Expects To Complete SPAC Merger By July, Posts 49% Revenue Decline In Q1
Portfolio Pulse from Akanksha Bakshi
Electric vehicle company VinFast filed Form F-4 to complete a merger with SPAC Black Spade Acquisition Co (NYSE:BSAQ) by July 20. VinFast reported a 49.2% YoY revenue decline to $83.54 million in Q1, attributing it to lower selling prices and a pivot to EVs. The pro forma equity valuation of VinFast is estimated to be ~$23 billion.
June 16, 2023 | 1:12 pm
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VinFast filed Form F-4 to complete a merger with Black Spade Acquisition Co (NYSE:BSAQ) by July 20, with an estimated pro forma equity valuation of ~$23 billion.
The completion of the merger with VinFast will likely have a positive short-term impact on BSAQ's stock price, as the pro forma equity valuation of VinFast is estimated to be ~$23 billion. The merger will provide VinFast with access to capital and resources to expand its EV business.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
VinFast's valuation was based on a comparison with EV manufacturer Lucid Group Inc (NASDAQ:LCID), citing similarities in revenue scale and shared global target market.
The comparison of VinFast's valuation to Lucid Group Inc (NASDAQ:LCID) may not have a direct short-term impact on LCID's stock price. However, it highlights the similarities between the two companies in terms of revenue scale and shared global target market, which could be of interest to investors.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 50