In a high-stakes move reshaping the electric vehicle landscape, electric utility vehicle company Tembo E-LV has struck a $904 million merger deal with special purpose acquisition company (SPAC) Cactus Acquisition Corp. 1 Ltd. The merger, announced Thursday, marks a significant leap for both companies and is the result of intricate legal orchestration involving four major law firms.
VivoPower $904M Merger : A Multi-Million Dollar Deal
The merger, unveiled in a Thursday statement, came after meticulous due diligence and the issuance of a fairness opinion from an independent third party to Cactus’ board of directors. The deal, which values the combined entity at an impressive $904 million, signifies a landmark event in the EV and sustainable energy sectors.
Tembo E-LV, a subsidiary of the Nasdaq-listed VivoPower, is renowned for its electric utility vehicles designed for rugged and customized applications across various industries. These vehicles cater to fleet owners in mining, agriculture, defense, and other sectors, providing a fully electric alternative that supports sustainability and operational efficiency.
Legal Heavyweights Behind the Scenes
The complex transaction saw White & Case LLP and NautaDutilh NV representing VivoPower and Tembo in the U.S. and Dutch legal realms, respectively. On the other side, Ellenoff Grossman & Schole LLP and De Metz Advocaten NV provided legal counsel to Cactus Acquisition Corp., ensuring the deal’s smooth progression through legal channels.
SPAC Strategy and Market Impact
Cactus Acquisition Corp., a SPAC, operates as a shell entity with the purpose of acquiring private companies and bringing them public. With a successful IPO raising $126.5 million in November 2021, Cactus has focused its acquisition strategy on the energy sector, culminating in this significant merger with Tembo E-LV.
