Lotus Technology, the global technology subsidiary within the Lotus Group has completed fundraising that has valued the company at nearly US$4.5 billion (RM20.56 billion), said the company as reported by Reuters.
Parent firm, Lotus Group was previously aiming to float the Lotus Technology division that would value it at 5 billion to 6 billion pounds sterling, or RM28.5 billion to RM34.2 billion at the time. Lotus Technology confirmed to Reuters that this was the same round of fundraising, however it did not disclose the amount that was raised, or the investors that took part.
Lotus Technology will be responsible for the brand’s new wave of electric models, including the Eletre fully electric SUV that will be produced at a Geely plant in Wuhan, China; according to Reuters, production of the Eletre will commence by the end of this year.
Lotus Cars is 51% owned by Geely while the remaining 49% is owned by Etika Automotive, a subsidiary of Etika Strategy that is owned by Tan Sri Syed Mokhtar Al-Bukhary who has control of DRB-Hicom. Etika has a 30% stake in Lotus Technology.
The Zhejiang Geely Group completed the transaction for its majority stake in Lotus in 2017, following the decision by DRB-Hicom to sell Lotus entirely for 100 million pounds sterling (RM556 million) at the time.
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how do these valuations work. sell the whole group for 100 mil pounds, never really do anything except launch 1 model then now just a subsidiary is more than billion pounds?
That’s the result of bad management decisions making and lack of visions.
Quite the opposite, a company with bad management would not convince investors to put in Rm 21Billion of their monies. People give money because they have confidence in the management.
21 billion is total equity value not the money put in during this round
You’re comparing face value and stock value, totally different thing. A company like Grab has face value no more than its startup capital, owning no tangible assets such as offices or building but its stock value is many times more.
Lotus better return at least RM1 billion to Malaysian govt as token of gratitude.
Stupid. That is like asking Grab to pay RM 1 billion to Malaysian govt as token of gratitude for being exMalaysian.