Upon the completion of the deal, VinFast will have an equity value of more than $23bn


VinFast to merge with Black Spade Acquisition in $27bn deal. (Credit: VinFast)

VinFast, a Vietnamese manufacturer of electric vehicles (EVs), has agreed to merge with a special purpose acquisition company (SPAC) Black Spade Acquisition in a deal that values the former at an enterprise value of about $27bn.

Upon the completion of the deal, VinFast will have an equity value of more than $23bn.

Established in 2017, VinFast produces and exports a full portfolio of e-scooters, e-SUVs and e-buses across Vietnam and North America.

The company expects to commence business across Europe soon.

VinFast also operates an automotive manufacturing complex in Hai Phong that is said to have up to 90% manufacturing automation and an annual production capacity of up to 300,000 units in phase 1.

The automotive firm was converted into a fully EV manufacturer last year and has delivered four EV models namely VF e34, VF 8, VF 9 and VF 5 to customers in Vietnam.

Following the closing of the deal with SPAC, VinFast will become a public company and will be listed in the US.

VinFast Auto global CEO Madame Thuy Le said: “VinFast has already demonstrated the ability to quickly reach international markets.

“The partnership with Black Spade and listing of VinFast in the US represents the perfect capital raising avenue for our future global ambitions and is also an important accomplishment for Vingroup.”

VinFast’s existing shareholders are expected to hold nearly 99% shares of the combined company on the completion of the transaction.

The proposed deal, which is subject to regulatory and shareholder approvals and other customary conditions, is expected to close in the second half of 2023.

Black Spade Acquisition chairman and co-CEO Dennis Tam said: “VinFast has demonstrated their execution excellence by building up a maximum production facility of up to 300,000 electric vehicles (EVs) a year and having a full range of beautifully designed high-quality EVs, all within the span of a few years.

“With the support of Vingroup, one of the largest conglomerates in Vietnam, VinFast is very well positioned to take advantage of the EV lifestyle trend and we are very excited about the future potential growth of VinFast in Vietnam and globally.”

In March 2022, the EV manufacturer announced its plans to make an initial investment of up to $2bn to build an EV and battery manufacturing facility in North Carolina, US.