- Luxembourg-based Arrival (NASDAQ:ARVL) on Thursday said it will merge with Kensington Capital Acquisition Corp. V for a pro forma enterprise value of $524 million.
- Kensington shareholders will receive, for every one Kensington ordinary share, an amount of newly issued shares equal to $17.00 divided by Arrival shares’ 10-day volume-weighted average price for the 10 days preceding the fourth day prior to Kensington’s shareholder meeting, the companies said.
- The combined companies will have pro forma cash of about $468 million, which includes Kensington's $283 million cash held in a trust account.
- The companies will contribute cash to fund commercialization plans, including the build-out of a manufacturing facility in Charlotte, North Carolina.
- “This transaction offers a potentially significant capital infusion and additional support in bringing our XL Van to market, Arrival CEO Igor Torgov said.
- Upon deal close, the combined company will continue to be named “Arrival,” and its ordinary shares are expected to remain listed on Nasdaq under the ticker symbol “ARVL.”
- The transaction assumes no redemptions by Kensington shareholders in connection with closing and the payment of estimated transaction expenses.
- The deal also excludes warrants, ordinary shares subject to share awards and options, and Arrival’s ongoing financing activities since December 31, 2022.
- The proposed deal has been approved by both Kensington and Arrival's board and is expected to be completed in the second half of 2023.
- Press Release.