Auto components major Samvardhana Motherson International Ltd on Monday said it will acquire 11 per cent stake in Israel's REE Automotive Ltd for up to USD 15 million.
Samvardhana Motherson International Ltd (SAMIL) via its wholly-owned subsidiary MSSL Consolidated Inc will subscribe up to 36,39,010 Class A ordinary shares of REE Automotive Ltd.
At a price of USD 4.122 per share translating to 11 per cent shareholding in REE Automotive Ltd on a fully-diluted basis, the company said in a regulatory filing.
REE is an automotive technology company engaged in the design, development and integration of various vehicle components into a module and complete modular platform specifically for commercial electric vehicles, it added.
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The company has manufacturing facilities at Coventry, in the UK and at Austin, in the US, the filing said.
REE has developed an innovative technology called "REEcorner" based on a portfolio of 175 patents registered and pending globally, which integrates essential vehicle systems such as steering, brakes, suspension, and powertrain control into a single, compact module.
As part of the transaction, SAMIL will also be entering into a supply chain management agreement with REE to accelerate its industrialisation in a mutually beneficial commercial construct, the company added.
Besides, the two companies will 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 US, it added.
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Subject to satisfactory completion of all conditions precedent, the transaction is expected to be closed within 30 days, SAMIL said.
