Battery maker Microvast Inc. will go public through a merger with a blank check company Tuscan Holdings Corp., according to knowledgeable people.
The transaction, which is expected to be announced as early as Monday, will value the combined company at around $ 3 billion, the people said, who asked not to be identified because the information is private.
The companies will receive more than $ 800 million in cash when the deal closes, including a $ 540 million investment led by Oshkosh Corp., BlackRock Inc., Koch Strategic Platforms and InterPrivate, the people said.
Representatives from Stafford, Texas Microvast and Tuscan declined to comment.
Special purpose acquisition company Tuscan raised $ 276 million in March 2019. Led by Chief Executive Officer Stephen Vogel, the company said it intended to focus on acquisition goals in the cannabis industry, although it could pursue an acquisition in any industry, according to the listing documents. .
Founded in 2006, Microvast makes batteries for commercial vehicles such as taxis and buses, as well as specialty transportation, including mining trucks and port equipment. CITIC Securities, a Chinese state broker, led a $ 400 million private funding round in the company in 2017, according to website.
One of the main investors in the additional investment raised to support the transaction – InterPrivate – has also managed an SPAC. InterPrivate Acquisition Corp. has a merger agreement with Lidar Aeva Inc. in November.