Automotive major, Samvardhana Motherson International Ltd is going to invest upto USD 15 million, in the auto technology company, REE Automotive. The transactions will be done through SAMIL’s wholly owned subsidiary MSSL Consolidated Inc.
Post the completion of this transaction SAMIL will hold 11% of diluted shares and 19% of non-diluted shares, in the 13 year old company, REE Automotive.
Through this acquisition, “SAMIL can leverage manufacturing capabilities for components and integration for ‘REEcorner’ module, and platform assembly to support full vehicle assembly, including assembly of P7 electric trucks in the USA. Reinforcing tier-0.5 status,” stated SAMIL’s exchange filings.
The transaction will be done in cash with expected completion time to be within 30 days.
Nasdaq-listed company, REE is an automotive technology organisation that deals in the designing, development, and integration of multiple vehicle components into a module and complete modular platform specifically for commercial EV Vehicles.These applications are utilised in the mid and last-mile delivery operations. This company has its headquarter in Israel and currently has its footprints in Coventry, UK, and Austin, Texas, USA.
Expansion plans
“SAMIL will also be entering into a supply chain management agreement with REE Automotive to accelerate its industrialisation in a mutually beneficial commercial construct,” stated the company’s exchange filings. SAMIL will act as an exclusive partner to manage the entire supply chain system which incorporates sourcing, managing, and integrating modules for the latter.
This supply chain agreement will also include sharing of efficiencies based on mutually agreed commercial constructs leveraging SAMIL global footprint and operations, stated the company. REE has an order book with OEMs of 600 trucks for execution by 2025.
