Hong Kong-listed special purpose acquisition firm TechStar Acquisition Corp said on Friday it is set to merge with Seyond Merger Sub, a special purpose acquisition unit of Seyond Holdings, in a SPAC transaction.
TechStar said in a statement that the merged entity would become a unit of Seyond Holdings, with the negotiated value of the latter being around HK$11.7 billion ($1.51 billion).
The U.S.-based privately held Seyond Holdings manufactures light detection and ranging technology. However, it has been recording losses since 2022, according to the TechStar statement.
The two companies have also entered into agreements with various investors, with the firms issuing shares of the Seyond unit at a price of HK$10.00 per share to the investors.
TechStar said its listing on the Hong Kong stock exchange would be withdrawn following the completion of the merger.
The firm also said that the new merged entity would also apply for a listing on the Hong Kong stock exchange, and in the event of not receiving an approval, the transaction would not proceed.
Source: Reuters.com