RIO DE JANEIRO, BRAZIL – EMBRAER (EMBR3) shares soared 15% to R$19.94 on Thursday, June 10, the highest rise on the Ibovespa exchange, after the company confirmed that its subsidiary Eve Urban Air Mobility Solutions, dedicated to the development of an electric urban air mobility system (eVTOL), started negotiations for a possible merger with Zanit Acquisitions, a SPAC incorporated in the U.S.
The move drives the stock to its highest intraday level since February 20, 2020. This is also the best trading session for the stock, in terms of valuation, since June 8 last year, when it surged 18.36%.
In a notice released to the market, EMBRAER says that negotiations are ongoing, but that it can not forecast if a final agreement will be reached with Zanite nor its terms.
According to people with knowledge of the matter the deal is slated to value the combined entity at about US$2 billion. That amount would be equivalent to about 80% of EMBRAER’s market value at yesterday’s close. Zanite Acquisitions, a special purpose acquisition company (SPAC), is seeking to raise new capital to finance the transaction.
Zanite Acquisitions, based in Cleveland, Ohio, raised US$230 million in its IPO in November. The company is led by co-Chief Executive Officers Kenn Ricci, co-owner of Directional Aviation Capital, which controls private flight operator Flexjet, and Steve Rosen, co-founder of private equity firm Resilience Capital Partners.
Source: Exame