Gores Guggenheim (GGPI) Stock Gains 3% Today: It Signs Into A Definitive Business Combination Agreement With Polestar

Gores Guggenheim (GGPI) stock saw significant share price movement during recent months, falling to $9.76 and rising to highs of $10.02, resulting in a 2.6% profit. But today, in pre-market, it gains 3.01% after the announcement that they have entered into a definitive business combination agreement with Polestar Performance AB and its affiliates. Following the completion of the proposed business combination, the combined company will be owned by a new public company called Polestar Automotive Holding UK Limited, which will be listed on Nasdaq under the ticker symbol “PSNY.”

The transaction has an estimated enterprise value of USD 20 billion, representing approximately 3.0x 2023E revenue and 1.5x 2024E revenue. Current Polestar equity holders will retain about 94 percent of Polestar and will roll 100%of their equity interests into the pro forma firm. It is expected that the proposed business combination, which has been unanimously approved by the Board of Directors Gores Guggenheim and the Board of Directors of Polestar, will be completed in the first half of 2022, subject to approval by shareholders Gores Guggenheim and other customary closing conditions.

April Sanchez

Business and Tech Reporter