VinFast announces new SPAC deal worth more than $23 billion

VinFast Auto has formed a business combination agreement with Black Spade Acquisition Co. in hopes of finally achieving that IPO in the US it has been promising for years. If and when the transaction is complete, VinFast is expected be listed on the US stock market at an equity value over $23 billion.

In true VinFast fashion, the automotive brand of parent conglomerate VinGroup is spinning several plates on multiple continents. The young automaker has already delivered four different EV models in its native Vietnam, while it’s VF 8 begins making its way to customers on the West Coast of North America.

With simultaneous expansions underway in Europe and a US manufacturing hub about to break ground in North Carolina, it’s sometimes hard to keep up with a company like VinFast, which seems to be moving more quickly than any other automaker on the planet. This level of global scope and execution requires plenty of money however, as we’ve seen from the automaker’s recent movements.

Last month, VinFast announced an additional $2.5 billion in funding, led by $1 billion in personal money from VinGroup chair Pham Nhat Vuong. Vuong said he believes in the company, and understands the capital required to transcend a (young) national brand to the international stage.

Another savvy way to turn some heads in the US is to go public – a strategy VinFast has been quite candid about since we first covered it years ago. This past December, the company appeared poised to do so, having filed the necessary paperwork with the SEC proposing an initial public offering (IPO) of its ordinary shares.

Today, the pending IPO moves one step closer to a NYSE bell ringing ceremony, as VinFast shared it will go the business combination route, hardening itself with a massive equity valuation.

A VinFast IPO is still in the works

Per VinFast Auto, it has entered into a business combination agreement with Black Space Acquisition Co ($BSAQ) – founded by Black Spade Capital. The proposed agreement credits the Vietnamese automaker at an enterprise value of approximately $27 billion and an equity value of $23 billion.

These values do not include funds from Black Spade’s roughly $169 million of cash in trust (this assumes no Black Spade shareholders elect to have their shares redeemed for cash as permitted). After the completed and approved transaction, existing shareholders of VinFast will hold approximately 99% shares of the combined company. VinFast global CEO Madame Thuy Le spoke:

VinFast has already demonstrated the ability to quickly reach international markets. The partnership with Black Spade and listing of VinFast in the U.S. represents the perfect capital raising avenue for our future global ambitions and is also an important accomplishment for Vingroup.

The transaction is expected to close in the second half of 2023 and is of course subject to regulatory and shareholder approvals.