New Delhi: Samvardhana Motherson International Ltd announced on Monday their plan to purchase an 11 percent share in REE Automotive Ltd of Israel for a maximum of USD 15 million. SAMIL, a subsidiary of Samvardhana Motherson International Ltd., will purchase a maximum of 36,39,010 Class A ordinary shares of REE Automotive Ltd. through its wholly-owned subsidiary MSSL Consolidated Inc.
The company stated in a regulatory filing that they acquired an 11% stake in REE Automotive Ltd at a cost of USD 4.122 per share on a fully-diluted basis. REE is a company in the automotive technology industry that focuses on creating, developing, and incorporating different vehicle parts into a module and complete modular platform, specifically designed for commercial electric vehicles. The filing stated that the company has manufacturing plants in both Coventry, UK and Austin, US.
REE has created a new technology called "REEcorner" by combining steering, brakes, suspension, and powertrain control into one module, using a portfolio of 175 patents. In addition to the deal, SAMIL will also engage in a supply chain management contract with REE to enhance its industrialization in a mutually beneficial commercial arrangement, the company stated. In addition, the two companies will utilize their manufacturing capabilities for components and integration for the "REEcorner" module, as well as platform assembly to assist in the full vehicle assembly, including putting together 'P7 electric' trucks in the US. SAMIL stated that the transaction is anticipated to close within 30 days, pending the fulfillment of all necessary requirements.
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