Samvardhana Motherson to infuse $15 million in REE Automotive

16 Sep 2024 , 03:27 PM

Samvardhana Motherson Ltd. has announced the acquisition of an 11% fully diluted stake and a 19% non-diluted investment in REE Automotive Ltd., headquartered in Israel. The corporation will invest a total of $15 million in this deal.

The automotive component producer announced in an exchange filing on Sunday that it will subscribe for up to 36.39 lakh Class A Ordinary shares of REE Automotive Ltd. at a price of $4.122 per share. The transaction will take place through Samvardhana Motherson’s wholly-owned subsidiary MSSL Consolidated Inc. or its affiliates.

REE Automotive is a Nasdaq-listed company that designs, develops, and integrates multiple vehicle components into a module and entire modular platform for commercial electric vehicles used in last-mile delivery applications. The business has 175 patents issued and pending worldwide that combine critical vehicle components such as steering, brakes, suspension, and powertrain management into a single, small module.

In calendar year 2023, the target company reported a turnover of $1.6 million.

Samvardhana Motherson will also sign a supply chain management agreement with REE Automotive to enhance industrialisation in a mutually advantageous commercial arrangement.

Following this deal, Samvardhana Motherson will be REE’s exclusive partner in managing the complete supply chain, including module sourcing, management, and integration.

At around 3.18 PM, Samvardhana Motherson was trading 170% higher at ₹193.73, against the previous close of ₹190.49 on NSE. The counter touched an intraday high and low of ₹194.40, and ₹189.68, respectively.

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