EVBox is going public via a merger with special purpose acquisition company (SPAC) TPG Pace (NYSE:TPGY) and TPGY stock is soaring as a result.
Here’s what potential investors need to know about the EVBox SPAC merger with TPG Pace.
EVBox is a subsidiary of Engie New Business S.A.S., which is a subsidiary of Engie S.A.
Engie S.A. is a low-carbon energy services company with a focus on reducing carbon production around the world.
EVBox fits into its goals as it’s an electric vehicle (EV) charging company.
The EV charging company is the largest in Europe and has a network of more than 190,000 charge ports.
TPG Pace is a SPAC company created by the investment firm TPG.
The company’s goal was to find a high-growth company to merge with strong environmental, social, and governance principles.
One benefit of the SPAC merger is that EVBox will get continued support from TPG.
The merger will have TPG Pace acquiring EVBox with a mix of cash and equity.
That includes $225 million from a public investment in private equity (PIPE), $100 million from TPG Pace’s purchase agreement, and another $350 million in cash from its trust account.
It’s worth noting that $180 million of this will go to Engie S.A. as a cash payment.
In total, EVBOX is expected to have more than $425 million in gross proceeds to work with.
The company plans to use these funds to expand its business.
That includes growing its network in Europe and North America.
The SPAC merger implies an enterprise value of $969 million for EVBox.
When the transaction is complete, it will set the pro-forma equity value of the company at about $1.394 billion.
The deal will also have TPG Pace changing its name to EVBox Group once it is complete.
It will also result in TPGY stock changing to EVB stock but it will still trade on the New York Stock Exchange.
The deal is set to close during the first quarter of 2021.
TPGY stock was up 109.5% as of Friday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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