VinFast Expects To Complete SPAC Merger By July, Posts 49% Revenue Decline In Q1

Electric vehicle (EV) company VinFast yesterday filed Form F-4 - Registration of securities, foreign private issuers, and business combinations with U.S. securities regulators to complete a merger with SPAC Black Spade Acquisition Co BSAQ.

VinFast reported a quarterly revenue decline of 49.2% year-over-year to $83.54 million, with a net loss of $(598.34) million.

Net cash flows used in operating activities totaled $(811.83) million for the quarter.

VinFast attributed the quarterly revenue decline to lower selling prices and its phase-out of internal combustion vehicles as it pivoted to become a dedicated EV maker, reported Reuters.

According to the filing, VinFast and Black Spade expect to complete the merger by July 20.

The filing disclosed that the pro forma equity valuation of VinFast upon consummation of the transactions is estimated to be ~$23 billion.

Also Read: VinFast Unleashes Vehicle Support Blitz: Cash, Vouchers Await If Your Vehicle Hits A Snag

VinFast's valuation was based on Black Spade's conclusion that VinFast and EV manufacturer Lucid Group Inc LCID were comparable "given their similarity in revenue scale and shared global target market with a near-term emphasis on U.S. sales."

VinFast founder Pham Nhat Vuong anticipates selling up to 50,000 units this year, a nearly seven-fold increase over 2022, as the company ramps up exports to North America and begins delivering to Europe, mentioned Reuters.

Price Action: LCID shares are trading higher by 0.61% at $6.63 premarket on Friday.

Photo Via Company