Chinese electric vehicle maker Byton which is backed by Foxconn – an assembler of Apple products, is in talks to go public through a merger with a special purpose acquisition company (SPAC) as per a Reuters report.
SPAC company is a shell company that raises money through initial public offering for the purpose of acquiring an existing company,
Byton is in talks with potential SPAC companies and investors for listing via SPAC deals and plans to go public as early as this year.
The EV startup was launched in 2017 by Future Mobility Corp, co-founded by former BMW and Nissan Motor executives. However, the startup has been troubled with cash flow problems since 2019 as investors were cautious about investing in a crowded sector when EV sales took a hit in the world’s biggest car market.
Last month, Byton sealed a deal to start making electric sports-utility with Foxconn and the Technological Development zone in 2022. As part of the agreement, Foxconn will invest $200 million in the SUV research and production project and help develop a supply chain for the EV production that aims to reduce the manufacturing cost of the car.
“The company is currently focusing on the optimisation of the supply chain manufacturing of Byton’s new energy vehicles, and will not comment on other market rumours,” Foxconn (formally Hon Hai Precision Industry Co Ltd) said in a statement.
Byton declined to comment.
- By Shraddha Kakade
Asst. Editor, Emerging Technology News