Today, it is expected that the business combination between Vietnamese electric car make VinFast and global investment company Black Spade Acquisition Co. will finally be confirmed.
Both companies previously announced this last August 10 after an agreement was reached at an extraordinary general meeting of Black Spade’s shareholders.
Upon the closing, VinFast will remain as the combined company, and its ordinary shares and warrants are expected to begin trading on the Nasdaq Stock Market LLC (Nasdaq) under the new ticker symbols “VFS” and “VFSWW,” respectively, a day or two after, the two companies said in a press statement.
Complete official results of the vote will be included in a current report on Form 8-K to be filed by Black Spade with the U.S. Securities and Exchange Commission.
“The voting results today are a vote of confidence in VinFast from Black Spade shareholders. I am proud of the achievements we have accomplished so far and filled with eager anticipation for the exciting and promising opportunities that this collaboration will bring in the future,” Le Thi Thu Thuy, Global CEO of VinFast Auto Ltd., said about the business combination announcement.
After the report of the business combination was released, the shares of Vingroup, recorded a remarkable increase of nearly 7% last Friday, August 11, reaching 72,600 dong ($3.06), a significant one-year high, as reported by Reuters.
Vinfast operates a state-of-the-art automotive manufacturing complex in Hai Phong, Vietnam, that boasts up to 90% manufacturing automation and can have an annual production capacity of up to 300,000 units. It manufactures and exports a portfolio of electric SUVs, electric scooters, and electric buses across Vietnam, North America, and, soon, Europe and has imported around 3,000 units to the US.
Recently, in the US, the brand was pounded as “unprepared” and “problematic” by American automotive journalists after test drive activities were initiated by the brand. The brutal reception of the first EV introduced — the VF 8 — was also hounded by previous issues with the EPA because of software issues.
Automotive News reported that only 128 VinFast VF 8 crossovers were registered between January and May 2023. Despite these hiccups, Vinfast continued to break ground on its North Carolina factory last July 28, on a 1,800-acre site located within the Triangle Innovation Point in Chatham County.
Meanwhile, the New York-listed shares of Black Spade (BSAQ.A), the special purpose acquisition company (SPAC) involved in the merger for VinFast’s listing, experienced an impressive surge of 73%, concluding at $18.50 by the end of Thursday’s trading session.
“We are thrilled to announce that our shareholders have overwhelmingly approved the Business Combination, demonstrating their continued confidence in the vision and potential of the partnership between Black Spade and VinFast,” Dennis Tam, Chairman and Co-CEO of Black Spade Acquisition Co, shared.
Nothing yet is known about what the exact effects of the business combination apart from the benefits to the improvement of share prices.
“The proposals related to the Business Combination received resounding support from our shareholders, with approximately 99.99% of votes cast in favor of approving the Business Combination. Thanks to our shareholders’ unwavering support, we are one step closer to the exciting milestone of taking VinFast public,” Tam concluded.
Black Spade is listed on the NYSE, was founded by Black Spade Capital, which runs a global portfolio consisting of a wide spectrum of cross-border investments, and consistently seeks to add new investment projects and opportunities to its portfolio.
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