Apollo Future Mobility to acquire WM Motor’s subsidiary for US$2.023 billion

Shanghai (Gasgoo)- A wholly-owned subsidiary of Apollo Future Mobility Group Limited ("Apollo Future Mobility"), a HK-listed smart mobility solution provider, and the Chinese electric vehicle startup WM Motor Holdings Limited ("WM Motor") entered into an agreement on Jan. 11 under which the former conditionally agreed to buy shares from the latter, at a consideration of US$ 2,023.27 million (roughly HK$15,853.71 million), according to a statement Apollo Future Mobility issued to the Hong Kong stock exchange.

The target company to be acquired is WM Motor Global Investment Limited, a direct wholly-owned subsidiary of WM Motor.

Photo credit: WM Motor

The acquisition will be settled by way of allotment and issuance of the consideration shares at the issue price of HK$0.55 per share.

According to the announcement, a total of 28,824,919,557 consideration shares will be allotted and issued by Apollo Future Mobility to WM Motor under the specific mandate upon the acquisition completion.

Notably, WM Motor is a substantial shareholder of Apollo Future Mobility as it holds around 23.67% of the entire issued share capital of the latter as of the announcement date. Hence, the latest transaction was made to help WM Motor go public through a back-door listing.

Besides, Apollo Future Mobility also stated it has proposed a placing of up to 7,123,363,636 shares at a price of no less than HK$0.55 per share to at least six independent placees, expecting to raise gross proceeds of around HK$3,917.85 million and net proceeds of roughly HK$3,526.06 million. About 70% of the net proceeds are planned for further development of WM Motor's design, development, manufacturing, and sales of high-performance hypercars and smart electric vehicles, as well as provision of mobility technology solutions.