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Dec. 21, 2021, 6:21 a.m. EST

Embraer unit Eve to go public via merger with SPAC Zanite Acquisition in deal valued at about $2.4 billion

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By Ciara Linnane

Embraer unit Eve, an urban air mobility business, said Tuesday it is going public via a merger with special-purpose acquisition corporation Zanite Acquisition Corp. in a deal with an implied enterprise value of about $2.4 billion. Once the deal closes, the SPAC will e renamed Eve Holding Inc. and trade on the New York Stock Exchange under the ticker "EVEX." Brazilian aircraft maker Embraer SA /zigman2/quotes/201881360/composite ERJ +1.63% /zigman2/quotes/201576050/delayed BR:EMBR3 -0.47% will retain a roughly 82% stake in the new company. "We believe that the urban air mobility market has enormous potential to expand in the coming years based on an efficient, zero-emissions transport proposition, and that with this business combination, Eve is very well positioned to become one of the major players in this segment, " said Francisco Gomes Neto, president and CEO of Embraer. Eve will have about $512 million in cash from the SPAC to fund operations and support growth. The sum includes a $305 million private investment in public equity, or PIPE, backed by commitments of $175 million from Embraer, $25 million from Zanite's sponsor and $105 million from a consortium of leading financial and strategic investors including Azorra Aviation, BAE Systems, Bradesco BBI, Falko Regional Aircraft, Republic Airways, Rolls-Royce and SkyWest, Inc. The deal is expected to close in the second quarter of 2022. Eve has an order backlog of about $5.2 billion, including 1,735 vehicle orders via no-binding letters of intent from 17 launch customers, including fixed wing and helicopter operators, aircraft lessors and ride sharing platform partners, the companies said.

/zigman2/quotes/201881360/composite
US : U.S.: NYSE
$ 10.58
+0.17 +1.63%
Volume: 471,543
May 23, 2022 11:08a
P/E Ratio
261.22
Dividend Yield
0.00%
Market Cap
$1.92 billion
Rev. per Employee
$257,358
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/zigman2/quotes/201576050/delayed
BR : Brazil: Bovespa
R$ 12.62
-0.06 -0.47%
Volume: 3.11M
May 23, 2022 11:53a
P/E Ratio
209.63
Dividend Yield
N/A
Market Cap
R$9.32 billion
Rev. per Employee
R$1.38M
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