Jul. 1 at 9:09 PM
$LOT Lotus Technology announces Etika exercised its put option
Lotus Technology announced that Etika Automotive exercised its put option on June 30 requiring us to purchase 49% of the equity interests in Lotus Advance Technologies held by Etika pursuant to the Put Option Agreement dated January 31, 2023 between the parties. Lotus UK is currently owned by Geely International and Etika. As announced on April 14 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 100% of the equity interests of Lotus UK through non-cash transactions based on pre-agreed prices. Upon completion, the Company will gain control over Lotus UK and consolidate its financial results.
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. 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 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.
