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May 13, 2023 / 21:02

VinFast, Black Spade merge, prepare for US listing

A merger between VinFast and Black Spade Acquisition will raise the former's value to US$27 billion.

VinFast Auto Pte Ltd, a member of the Vingroup conglomerate, and US-based Black Spade Acquisition Co announced on May 12 a business combination agreement.

Global CEO of VinFast Auto Le Thuy (4th from left) and Chairman and Co-CEO of Black Spade Acquisition Co Dennis Tam (4th right) at the agreement signing on May 12. Photo courtesy of the company 

The transaction values the post-merger company “at an enterprise value of approximately US$27 billion and an equity value of US$23 billion, not including cash from BSAQ’s approximately US$169 million of cash in trust,” VinFast said in a public statement.

The two companies assume that “no Black Spade shareholders elect to have their Black Spade shares redeemed for cash as permitted.”

The deal may close in the second half of the year subject to the approval of shareholders and regulatory bodies and other customary closing conditions. After the transaction, existing shareholders of VinFast will hold approximately 99% shares of the combined company, the company said.

The post-merger company will also be listed on the US stock market. In December 2022, the company announced it had filed for the initial public offering (IPO) on the New York Stock Exchange.

“The partnership with Black Spade and listing of VinFast in the US represents the perfect capital raising avenue for our future global ambitions and is also an important accomplishment for Vingroup,” said VinFast global CEO Thuy Le.

“VinFast has demonstrated their execution excellence by building up a maximum production facility of up to 300,000 electric vehicles (EVs) a year and having a full range of beautifully designed high-quality EVs, all within the span of a few years,” said Dennis Tam, Chairman and Co-CEO of Black Spade Acquisition Co.

“With the support of Vingroup, one of the largest conglomerates in Vietnam, VinFast is very well positioned to take advantage of the EV lifestyle trend and we are very excited about the future potential growth of VinFast in Vietnam and globally.”

VinFast was founded in 2017. The company envisioned becoming one of the leading smart electric vehicle manufacturers.

The company manufactures and sells a complete portfolio of e-SUVs, e-scooters, and e-buses in Vietnam, North America, and soon in Europe.

Its production complex in Hai Phong boasts up to 90% manufacturing automation and an annual production capacity of up to 300,000 units in Phase 1.

VinFast became a full EV manufacturer in 2022 and has delivered four EV models: VF e34, VF 8, VF 9, and VF 5 to customers in Vietnam to date.

The EV manufacturer recently passed an important milestone in its journey to becoming a recognized global EV brand,  with the first VF 8 EVs exported to North America earlier this year.

Black Spade, listed on the NYSE, was founded by Black Spade Capital, which runs a global portfolio consisting of a wide spectrum of cross-border investments, and consistently seeks to add new investment projects and opportunities to its portfolio.