Volvo Cars, the largest shareholder in premium electric vehicle company Polestar, today welcomes the plans announced by Polestar to list on the Nasdaq stock exchange in New York. The planned listing will be made through a business combination with Gores Guggenheim, Inc, a special purpose acquisition company formed by affiliates of The Gores Group and Guggenheim Capital LLC. The transaction implies an enterprise value of approximately U.S. $20 billion for the combined company. Please see Polestar’s announcement below. Proceeds from the business combination are expected to be used to help fund significant investment in the expansion of Polestar’s products, operations and markets to create a leading company in the rapidly growing global premium electric vehicle market.
“Volvo Cars is a proud and supportive shareholder in Polestar, which we founded and have helped develop since its launch as an electric vehicle company in 2017,” said Håkan Samuelsson, chief executive of Volvo Cars. Mr. Samuelsson, who is also chairman of Polestar, added: “The estimated valuation for Polestar reflects the exciting growth potential in electric vehicles, where we see sharply increased demand.” In connection with the business combination, Volvo Cars will make additional equity investments in Polestar by up to U.S. $600 million. Volvo Cars is, upon completion of the transactions, expected to hold close to 50 per cent of the combined company. As earlier announced Volvo Cars is evaluating a potential IPO during this year. This process continues to progress according to plan.