Lotus Technology to Acquire 100% Equity Interest of Lotus Advance Technologies and Integrate All Business and Operations under Lotus Brand
Rhea-AI Summary
Lotus Technology (NASDAQ:LOT) has announced a significant strategic acquisition where it will obtain 100% equity interest in Lotus Advance Technologies Sdn Bhd (Lotus UK) through non-cash transactions. This follows put option exercises by both Etika Automotive Sdn Bhd (49% stake) on June 30, 2025, and previously by Geely International Hong Kong (51% stake) on April 14, 2025.
The transaction will be executed based on pre-agreed prices, with Lotus Tech issuing new shares valued at $10 per share as consideration. Lotus UK's valuation is set at 1.15x revenue plus cash minus debt, based on LGIL's 2024 audited financials. The acquisition was triggered after meeting the condition of Lotus UK exceeding 5,000 vehicle sales in 2024.
Upon completion expected by 2025, Lotus Tech will gain full control over Lotus UK's operations, including its sportscar and hypercar manufacturing division, as well as Lotus Engineering's consultancy services to OEMs and Tier 1 suppliers globally. The deal is subject to regulatory approvals.
Positive
- None.
Negative
- Potential share dilution due to new share issuance at $10 per share
- Transaction subject to regulatory approval risks
- Additional debt obligations from Lotus UK's liabilities will be consolidated
Insights
Lotus Tech's acquisition of Lotus UK consolidates the brand, adds sportscar manufacturing and engineering consulting to their portfolio.
Lotus Technology is executing a strategic consolidation by acquiring the remaining 100% equity interest in Lotus Advance Technologies (Lotus UK), following put option exercises by both Etika Automotive (49% stake) and Geely International (51% stake). This non-cash transaction will be completed through share issuance valued at $10 per share based on a pre-agreed formula of 1.15x Lotus UK's 2024 revenue (plus cash minus debt).
This acquisition represents a significant strategic evolution for Lotus Tech, as it integrates two complementary business units under one corporate umbrella: Lotus UK's traditional high-performance sportscar and hypercar manufacturing operations, plus Lotus Engineering's consultancy services which generates revenue from OEMs and Tier 1 suppliers globally.
The transaction was triggered after Lotus UK exceeded the threshold of 5,000 vehicles sold in 2024, satisfying the pre-established condition for the put options. This sales achievement signals improving operational performance at Lotus UK, potentially adding meaningful revenue to Lotus Tech's consolidated results.
From a financial perspective, this consolidation creates a vertically integrated luxury mobility company with diversified revenue streams - from mass-market premium electric vehicles (Lotus Tech's existing business) to ultra-high-end sportscars and engineering services. The non-cash nature of the transaction preserves Lotus Tech's liquidity while the consolidation should drive operational efficiencies and potential cost synergies across the unified Lotus brand ecosystem.
NEW YORK, July 01, 2025 (GLOBE NEWSWIRE) -- Lotus Technology Inc. (“Lotus Tech” or the “Company”) (Nasdaq: LOT), a leading global intelligent and luxury mobility provider, today announced that Etika Automotive Sdn Bhd (“Etika”) exercised its put option on June 30, 2025, requiring us to purchase
Lotus UK is currently owned by Geely International (Hong Kong) Limited (“Geely HK”) and Etika. As announced on April 14, 2025, Geely HK exercised a similar put option granted to it by the Company. With Etika having exercised its put option, the Company is expected to acquire
Lotus UK controls the manufacturing operations of Lotus’ sportscars and hyper cars, and Lotus Engineering which provides comprehensive consultancy services to many of the OEMs and Tier 1 suppliers around the world.
The acquisition is expected to be completed by 2025, subject to potential regulatory approvals.
In conjunction with the business combination between the Company and L Catterton Asia Acquisition Corp, a special purpose acquisition company affiliated with L Catterton, a leading global consumer-focused investment firm, the Company and Lotus UK entered into a Put Option Agreement with each of Geely HK and Etika. Pursuant to these agreements, each of Geely HK and Etika was granted the right to require the Company to acquire its equity interest in Lotus UK at a pre-agreed pricing method1 and upon satisfaction of the condition (“Put Option Exercise Condition”) that the total number of vehicles sold by Lotus UK and its subsidiaries shall exceed 5,000 in 2024, with the exercise of such options by Geely HK and Etika not cross-conditioned on one another. As of December 31, 2024, the Put Option Exercise Condition had been satisfied.
Note 1: Pursuant to the agreement, the Company will issue new shares valued at
About Lotus Technology Inc.
Lotus Technology Inc. has operations across the UK, the EU and China. The Company is dedicated to delivering luxury lifestyle battery electric vehicles, with a focus on world-class R&D in next-generation automobility technologies such as electrification, digitalisation and more. For more information about Lotus Technology Inc., please visit www.group-lotus.com.
Forward-Looking Statements
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential”, “forecast”, “plan”, “seek”, “future”, “propose” or “continue”, or the negatives of these terms or variations of them or similar terminology although not all forward-looking statements contain such terminology. Forward-looking statements involve inherent risks and uncertainties, including those identified under the heading “Risk Factors” in the Company’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Lotus Tech undertakes no obligation to update any forward-looking statement, except as required under applicable law.
Contact Information
For investor inquiries
ir@group-lotus.com
FAQ
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