Lotus Technology Acquires Full Ownership of Lotus UK with Etika, Geely Put Options.

Lotus Technology plans to fully acquire Lotus UK after exercising put options from Etika and Geely. Lotus Technology is a luxury electric vehicle company focused on electrification, digitalization, intelligence, and other automotive technologies. The company operates in China, the UK, and the EU market, designing, developing, and selling luxury lifestyle cars under the iconic British brand Lotus.

Title: Lotus Technology Inc. to Acquire Full Ownership of Lotus UK

Lotus Technology Inc. (“Lotus Tech”) has announced that it will acquire full ownership of Lotus UK after Etika Automotive Sdn Bhd exercised its put option on June 30, 2025. This acquisition follows a similar move by Geely International (Hong Kong) Limited, which exercised its put option on April 14, 2025. The transaction will consolidate Lotus Tech's control over Lotus UK, which oversees the manufacturing of Lotus’ high-performance vehicles and consultancy services.

Under the Put Option Agreement dated January 31, 2023, both Geely HK and Etika were granted the right to require Lotus Tech to acquire their equity interests in Lotus UK at a pre-agreed pricing method upon satisfaction of the condition that the total number of vehicles sold by Lotus UK and its subsidiaries shall exceed 5,000 in 2024. As of December 31, 2024, this condition was met, allowing both parties to exercise their put options.

The acquisition will be completed through non-cash transactions involving the issuance of new shares valued at $10 per share. Lotus UK is valued at 1.15 multiples of revenue plus cash minus debt of Geely International (Hong Kong) Limited, based on its audited consolidated annual financial report of 2024.

Lotus Tech expects the acquisition to be finalized by 2025, pending regulatory approvals. This strategic move aims to strengthen the company's brand coherence and operational control in the luxury electric vehicle sector. The acquisition will also consolidate Lotus UK’s financial results, potentially enhancing the overall financial position of the Company.

However, the acquisition may strain financial resources or impact cash flow, as it involves non-cash transactions. Additionally, the need for regulatory approvals introduces uncertainty regarding the completion of the acquisition, which could delay or derail the strategic transformation of the company's operations.

References:
[1] https://www.quiverquant.com/news/Lotus+Technology+Inc.+to+Acquire+100%25+Ownership+of+Lotus+UK+Following+Put+Option+Exercises+by+Etika+and+Geely+HK
[2] https://finance.yahoo.com/news/lotus-technology-acquire-100-equity-210000648.html