EV firm Microvast to go public through $3 bln merger with SPAC

Feb 1 (Reuters) - Electric-vehicle battery maker Microvast said on Monday it would go public through a merger with blank-check company Tuscan Holdings Corp, in a deal that values the combined entity at roughly $3 billion.

The deal with Tuscan was announced in November. However, the financial details were not disclosed then.

Microvast will receive $822 million in gross cash proceeds, which includes a private investment of $540 million from investors like Oshkosh Corp, BlackRock Inc, Koch Strategic Platforms and InterPrivate Investment Partners.

Microvast, which was founded in 2006 and is headquartered in Texas, made batteries that powered the electric buses used at the 2018 Winter Olympic Games in Pyeongchang, South Korea.

A blank-check firm, also known as a special purpose acquisition company (SPAC), uses proceeds from an initial public offering to buy a private company, typically within two years. The private company is then taken public.

Electric vehicle firm Faraday Future, online learning platform Nerdy and smart-lock maker Latch are other companies that have announced mergers with blank-check companies so far this year.

Tuscan raised $240 million in its initial public offering in March 2019. ( (Reporting by Niket Nishant in Bengaluru; Editing by Shailesh Kuber)