Embraer Stock Flies High On Eve's SPAC Deal, NYSE Listing

Embraer SA ERJ has agreed to combine its urban air mobility business with publicly held special purpose acquisition company Zanite Acquisition Corp ZNTE.
The resulting entity will be named Eve Holding, Inc and listed on the NYSE under the new ticker symbol, "EVEX" and "EVEXW."
The business combination values Eve at an implied enterprise value of $2.4 billion and a total pro forma equity value of $2.9 billion.
Embraer, through its subsidiary, will remain a majority stockholder with an approximately 82% equity stake in Eve Holding following the closing of the business combination.
Eve will be led by co-CEOs Jerry DeMuro and Andre Stein.
Transaction proceeds will be used to develop and commercialize Eve's urban air mobility solution spanning eVTOL design and production, service and support, fleet operations, and urban air traffic management.
The transaction is expected to close in 2Q22.
Eve has secured launch orders from 17 customers via non-binding letters of intent, resulting in a pipeline of 1,735 vehicles valued at ~$5.2 billion.
Price Action: ERJ shares are trading higher by 15.8% at $16.09 on the last check Tuesday.