VinFast, merger partner: Work proceeding on deal that could be worth billions

RALEIGH – Electric vehicle manufacturer VinFast and its proposed merger partner Black Spade Acquisition Company say they are continuing to work on a proposed merger that could raise more than $20 billion in a stock offering.

The companies told WRAL TechWire in separate statements that Black Spade’s decision to extend its existence by one year beyond a merger that could have occurred as soon as next week is not an indicator that the deal might be off – or pushed back into 2024.

“The approval of the extension proposal … allows Black Spade Acquisition Co additional time to complete an initial business combination with VinFast,” Black Spade said in an emailed statement. “The Company will continue to work towards satisfaction of the conditions to completion of the business combination.”

If completed, the merger could provide cash that likely would be used to finance the construction of a planned vehicle manufacturing complex in Chatham County. VinFast expects to hire more than 7,000 people and invest some $2 billion in the first phase of construction at the plant as well as battery production facilities.

‘We still expect to complete the merger’

Reuters on Thursday first reported the Black Spade decision.

VinFast put a more definitive timeline on the deal.

Asked if the Black Spade news would have any impact on pending merger with Black Spade, a VinFast spokesperson said:

“No. We still expect to complete the merger with Black Spade in the second half of 2023 as announced.”

VinFast added that work continues on a stock offering through the so-called SPAC (special purpose acquisition company) deal.

“We are still preparing the listing as planned,” the spokesperson said.

Black Spade shareholders have not yet voted on the merger, and the company specified no timeline.

“The Company will hold a separate meeting of shareholders to consider and approve the proposed business combination in due course,” Black Spade said. “The meeting time and details will be included in the definitive proxy statement to be filed with the SEC and sent to the shareholders.”

Shareholders redeem $147 million in shares

However, shareholders did vote to redeem more than 124 million shares at a price of $10.4 for a total value of $147 million.

“Following the redemption in connection with the Articles Amendment, the amount of funds remaining in the trust account is approximately $28.56 million,” a new SEC filing said.

The proposed merger was announced in May.

Last month, Black Spade decided to move to the NYSE American Exchange from the NYSE

Earlier, VinFast withdrew its own IPO plans.

Black Spade was formed by Lawrence Ho, who is the head of Melco Resorts & Entertainment.