Samvardhana Motherson International Limited (SAMIL) has announced that it will acquire up to 36,39,010 Class A Ordinary shares of REE Automotive Ltd. through its wholly owned subsidiary, MSSL Consolidated Inc. The shares will be purchased at a price of USD 4.122 per share, translating to a stake of up to 19% on a non-diluted basis and up to 11% on a fully diluted basis. The total investment is expected to reach USD 15 million (Rs 126 crore).
REE Automotive, listed on NASDAQ, is an innovative automotive technology company specializing in the design, development, and integration of vehicle components into modular platforms for commercial electric vehicles (EVs). One of REE’s standout technologies is the “REEcorner™,” a compact module that integrates essential vehicle systems such as steering, brakes, and powertrain control, all managed electronically through a fully-by-wire system. This technology simplifies vehicle architecture and enhances performance, making it highly suitable for commercial EVs, including mid and last-mile delivery vehicles.
In addition to the equity investment, SAMIL will enter into a supply chain management agreement with REE Automotive to accelerate its industrialization and mutually benefit from the commercial partnership. This partnership will allow SAMIL to leverage its global footprint and manufacturing capabilities to support REE’s production, including the assembly of P7 electric trucks in the United States.
REE Automotive has an order book of approximately 600 trucks, with deliveries expected by 2025. The collaboration with SAMIL positions both companies to benefit from the growing demand for electric commercial vehicles.
Key Highlights:
- SAMIL to acquire up to 36,39,010 Class A Ordinary shares of REE Automotive at USD 4.122 per share.
- The acquisition will result in a 19% non-diluted and 11% fully diluted stake in REE.
- REE Automotive is an automotive technology company specializing in EV platforms, with its innovative REEcorner™ technology.
- SAMIL will partner with REE for supply chain management and leverage its global manufacturing capabilities.
The transaction is expected to be completed within 30 days, subject to all regulatory and procedural conditions being met.
