Gores Guggenheim (GGPI) Shareholders Approve Polestar Deal
Gores Guggenheim (NASDAQ:GGPI) announced that its shareholders have voted to approve its combination with Swedish electric vehicle-maker Polestar in a special meeting held earlier today.
Holders of 61,968,987 shares of GGPI common stock were present in person or by proxy, representing 61.97% of the voting power, constituting a quorum for the transaction. The business combination was overwhelmingly approved as it received 60,126,768 votes in favor of the transaction and just 1,708,775 against it.
The SPAC announced yesterday morning that it anticipates to generate $850 million in proceeds for Polestar, resulting in low redemptions of approximately 25%. Gores Guggenheim now stands to have the lowest redemptions of any SPAC since December 23, 2021, when FS II had just 1.2% redeemed completing its transaction with Pardes Biosciences.
The parties expect to close the business combination tomorrow, June 23, 2022, subject to the satisfaction or waiver of all closing conditions. Following the closing, Polestar’s common stock is expected to begin trading on the Nasdaq on Friday, June 24, 2022 under the new ticker symbol “PSNY”.
Gores Guggenheim and Polestar initially announced their $20 billion combination on September 27. Gothenburg, Sweden-based Polestar produces two consumer EV models that are on the road in Europe, North America, China, and Asia Pacific.
From 2022 onward, Polestar plans to launch one new EV model per year including a performance SUV expected to debut in October and a smaller SUV coupe slated for 2023. It generated $1.3 billion in revenue in 2021 and projects $17.3 billion for 2025.
ADVISORS
- Citi is acting as exclusive financial advisor to Polestar and is acting as joint placement agent on the PIPE.
- Kirkland & Ellis LLP is serving as legal advisor to Polestar.
- Deutsche Bank Securities Inc. is acting as financial advisor and lead capital markets advisor to Gores Guggenheim, Inc., and joint placement agent on the PIPE.
- Morgan Stanley and Guggenheim Securities, LLC are acting as financial advisor to Gores Guggenheim, Inc. and joint placement agents on the PIPE.
- Barclays is also acting as financial advisor to Gores Guggenheim.
- Weil, Gotshal & Manges LLP and Hannes Snellman are serving as legal advisor to Gores Guggenheim and Latham & Watkins LLP is serving as legal advisor to the placement agents.