Electric-vehicle maker and auto-design service company CH-AUTO agreed a merger with special-purpose acquisition company Mountain Crest IV worth nearly USD1.7 billion.
Wilson Sonsini and JunHe served as legal counsel while Harneys advised CH-AUTO on Cayman Islands law.
The deal comprises an initial equity value of USD1.25 billion and a net debt of USD460 million and is expected to close in the fourth quarter of this year. The newly merged company will then apply for a Nasdaq listing.
CH-AUTO’s clients include Chinese auto brands such as FAW, GAC and Geely. Its electric vehicle brand Qiantu Motor was established in 2015 and is regarded as CH-AUTO’s core asset.