Nikola Motor Company
Source: Nikola Motor Company
electric heavy truck manufacturer Nicola On Thursday it said it was planning to acquire a battery pack maker. Romeo power It is now underway after Romeo Power shareholders agreed to bid for just over half of the company’s outstanding shares.
In August, Nikola said it had agreed to buy financially struggling California-based battery module maker Romeo Power. $144 million in inventoryHowever, the deal was contingent on a tender offer to Romeo shareholders. Investors had to “bid” or exchange at least half of Romeo’s outstanding shares by midnight Wednesday for the transaction to proceed.
Nikola said 93.16 million Romeo shares, representing approximately 50.1% of the company’s total outstanding shares, were tendered by the deadline, just enough to complete the transaction.
Romeo Power’s remaining shares will be “cancelled and converted into Nikola shares,” and Romeo shareholders will receive 0.1186 Nikola shares for each Romeo share they hold, Nikola said.
Romeo Power specializes in manufacturing battery modules and packs for heavy-duty electric commercial vehicles using third-party lithium-ion battery cells.Nicola ready to ship between 300 and 500 Selling electric semi-trucks by the end of the year is Romeo’s biggest customer.
Nikola said in August that it had agreed to provide Romeo with $35 million in interim funding to continue operations until the merger was completed. Truck makers say bringing Romeo operations in-house will save them up to $350 million over the next four years.
The company’s shares fell more than 3% in pre-market trading on Thursday.
Nikola will report third quarter results before the US market opens on November 3rd.
https://www.cnbc.com/2022/10/13/nikola-nkla-tender-offer-romeo-power-rmo-acquisition-completed.html Nikola NKLA Tender Offer Romeo Power RMO Acquisition Completed