Polestar’s Business Combination With Gores Guggenheim, Inc.

Delphi and Kirkland & Ellis advised Polestar on the deal. Hannes Snellman and Weil advised Gores Guggenheim, Inc. Latham & Watkins represented the placement agents in the PIPE transaction. Davis Polk advised Guggenheim Capital on the deal.

Polestar Performance AB and its affiliates, the global electric performance car company, and Gores Guggenheim, Inc., a special purpose acquisition company (SPAC) formed by affiliates of The Gores Group and Guggenheim Capital, LLC, entered into a definitive business combination agreement.

Upon closing of the proposed business combination, the combined company will be held by a new public company that will be named Polestar Automotive Holding UK Limited, which is expected to be listed on Nasdaq under the ticker symbol “PSNY”. The transaction implies an enterprise value of approximately US$20 billion.

The transaction includes approximately $800 million of cash from Gores Guggenheim, Inc.’s trust account (subject to shareholder redemption rights) and $250 million in cash from PIPE financing.

Polestar was established as a new, standalone Swedish premium electric vehicle manufacturer in 2017. Founded by Volvo Cars and Geely Holding, Polestar enjoys specific technological and engineering synergies with Volvo Cars and benefits from significant economies of scale as a result.

The company is headquartered in Gothenburg, Sweden, and its vehicles are currently available and on the road in 14 global markets across Europe, North America and China. In 2021, Polestar is expanding into eight additional new markets in Europe, the middle East and Asia Pacific. Polestar cars are currently manufactured in two facilities in China, with additional future manufacturing planned in the USA.

Citi acted as exclusive financial advisor to Polestar and acted as joint placement agent on the PIPE.

Delphi’s team consisted of Annika Melin Jakobsson, Andreas Wirén (Picture), Dahae Roland and Emil Blomqvist.

The Kirkland team was led by corporate partners Eric Schiele, David Feirstein and Marshall Shaffer and associates Emily Lichtenheld and Jaye Kasper and capital markets partners Christian Nagler, Tim Cruickshank and Alex Lloyd and associate Mathieu Kohmann. The team also included corporate partners Daniel Dusek, Nicholas Norris, Stuart Boyd and Shuting Qi and associates Brandon Nesfield, Jay Pak, Eric St. Bernard, Julian Holland and Michael Ning, tax partners Sara Zablotney, Timothy Lowe and Andrew Douglas and associates Sherry Xie and Liz Allison, and executive compensation partner Michael Krasnovsky and associate Alison Beskin. 

The Hannes Snellman team included Richard Åkerman, Douglas Essehorn, Iiris Ikkelä, and Alexander Lindqvist (M&A), Elisabeth Vestin and Anna Ribenfors (IP & Tech), Josephine Lindgren and Lisa Pålsson (Employment), Fredrik Olsson and Sofia Bengtsson (Finance), and Andreas Wingren (Real Estate).

Latham & Watkins represented the placement agents in the PIPE transaction with a Washington, D.C.-based corporate deal team led by partner Rachel Sheridan and counsel Chuck Cassidy, with associates Juan Grana and Alexander Gonzalez Castillo. 

The Davis Polk corporate team included partners Leonard Kreynin, Stephen Salmon and Derek Dostal and associate Abigail G. Hathaway. Partner Ethan R. Goldman and associate Daniel L. Jose are providing tax advice. Counsel Mary K. Marks is providing antitrust and competition advice.

The Weil team advising Gores Guggenheim, Inc. was led by Private Equity partner Kyle Krpata and included associates Grace Ly, Frank Tsui, Hilary Wilkerson and John Zhang (Not Yet Admitted in New York). The team also included Mergers & Acquisitions partner James R. Griffin; Mergers & Acquisitions counsel Dov Kogen; Mergers & Acquisitions associates Claudia Lai, Benjamin Rowe and Christopher Perkins; Capital Markets partner Heather Emmel; Capital Markets associates Rebecka Moreno and Erica Yoon; the Asia team includes Corporate partners Henry Ong, Tim Gardner and Charles Ching and Corporate associates Jie Yuan, Jacky Sin, Yujing Liu, Yang Mo and Sam Flood; the London team includes Corporate partner David Avery-Gee, Corporate senior consultant Ian Hamilton, Tax partner Jenny Doak and Private Funds counsel Jacquelyn Volpe; Private Funds counsel Sarah Borden; Banking & Finance partner Gabriel Gregson; Banking & Finance associate Avni Patel; Tax partners Helyn Goldstein and Chayim Neubort; Tax associates Nathan Gusdorf and Madeline Joerg (Admitted in New York and North Carolina Only); Technology & IP Transactions partner Karen Ballack; Technology & IP Transactions/Privacy counsel Alexa Chu Clinton; Technology & IP Transactions/Privacy associates Robert Brown, Catherine Kim, Audrey Nicolson and Amanda DeMasi (Not Yet Admitted in New York); Executive Compensation & Benefits partner Amy Rubin; Executive Compensation & Benefits associates Tricia Walsh, Lauren Sawyer (Not Yet Admitted in New York) and Joshua Ehrhart (Not Yet Admitted in New York); Environmental Head Annemargaret Connolly; Environmental counsel Thomas Goslin; Regulatory Transactions partner Shawn Cooley; Regulatory Transactions associate Nathan Cunningham; Complex Commercial Litigation partner Bambo Obaro; Complex Commercial Litigation associate Morgan Donoian MacBride; Employment Litigation partner Gary Friedman; and Employment Litigation counsel Ami Zweig.

Involved fees earner: Derek Dostal – Davis Polk & Wardwell; Ethan Goldman – Davis Polk & Wardwell; Daniel Jose – Davis Polk & Wardwell; Leonard Kreynin – Davis Polk & Wardwell; Mary Marks – Davis Polk & Wardwell; Stephen Salmon – Davis Polk & Wardwell; Emil Blomqvist – Delphi Advokatfirman; Annika Melin Jakobsson – Delphi Advokatfirman; Dahae Roland – Delphi Advokatfirman; Andreas Wirén – Delphi Advokatfirman; Richard Åkerman – Hannes Snellman; Sofia Bengtsson – Hannes Snellman; Douglas Essehorn – Hannes Snellman; Iiris Ikkelä – Hannes Snellman; Josephine Lindgren – Hannes Snellman; Alexander Lindqvist – Hannes Snellman; Fredrik Olsson – Hannes Snellman; Lisa Pålsson – Hannes Snellman; Anna Ribenfors – Hannes Snellman; Elisabeth Vestin – Hannes Snellman; Liz Allison – Kirkland & Ellis; Alison Beskin – Kirkland & Ellis; Stuart Boyd – Kirkland & Ellis; Tim Cruickshank – Kirkland & Ellis; Andrew Douglas – Kirkland & Ellis; Daniel Dusek – Kirkland & Ellis; David Feirstein – Kirkland & Ellis; Julian Holland – Kirkland & Ellis; Jaye Kasper – Kirkland & Ellis; Mathieu Kohmann – Kirkland & Ellis; Michael Krasnovsky – Kirkland & Ellis; Emily Lichtenheld – Kirkland & Ellis; Alex Lloyd – Kirkland & Ellis; Timothy Lowe – Kirkland & Ellis; Christian Nagler – Kirkland & Ellis; Brandon Nesfield – Kirkland & Ellis; Michael Ning – Kirkland & Ellis; Nicholas Norris – Kirkland & Ellis; Shuting Qi – Kirkland & Ellis; Eric Schiele – Kirkland & Ellis; Marshall Shaffer – Kirkland & Ellis; Sherry Xie – Kirkland & Ellis; Sara Zablotney – Kirkland & Ellis; Charles Cassidy III – Latham & Watkins; Juan Grana – Latham & Watkins; Rachel Sheridan – Latham & Watkins; David Avery-Gee – Weil, Gotshal & Manges; Karen Ballack – Weil, Gotshal & Manges; Sarah Borden – Weil, Gotshal & Manges; Robert Brown – Weil, Gotshal & Manges; Charles Ching – Weil, Gotshal & Manges; Alexa Chu Clinton – Weil, Gotshal & Manges; Annemargaret Connolly – Weil, Gotshal & Manges; Shawn Cooley – Weil, Gotshal & Manges; Nathan Cunningham – Weil, Gotshal & Manges; Jenny Doak – Weil, Gotshal & Manges; Morgan MacBride – Weil, Gotshal & Manges; Joshua Ehrhart – Weil, Gotshal & Manges; Heather Emmel – Weil, Gotshal & Manges; Sam Flood – Weil, Gotshal & Manges; Gary Friedman – Weil, Gotshal & Manges; Tim Gardner – Weil, Gotshal & Manges; Helyn Goldstein – Weil, Gotshal & Manges; Thomas Goslin – Weil, Gotshal & Manges; Gabriel Gregson – Weil, Gotshal & Manges; James Griffin – Weil, Gotshal & Manges; Nathan Gusdorf – Weil, Gotshal & Manges; Madeline Joerg – Weil, Gotshal & Manges; Catherine Kim – Weil, Gotshal & Manges; Dov Kogen – Weil, Gotshal & Manges; Kyle Krpata – Weil, Gotshal & Manges; Claudia Lai – Weil, Gotshal & Manges; Yujing Liu – Weil, Gotshal & Manges; Grace Ly – Weil, Gotshal & Manges; Yang Mo – Weil, Gotshal & Manges; Rebecka Moreno – Weil, Gotshal & Manges; Chayim Neubort – Weil, Gotshal & Manges; Audrey Nicolson – Weil, Gotshal & Manges; Bambo Obaro – Weil, Gotshal & Manges; Henry Ong – Weil, Gotshal & Manges; Avni Patel – Weil, Gotshal & Manges; Christopher Perkins – Weil, Gotshal & Manges; Benjamin Rowe – Weil, Gotshal & Manges; Amy Rubin – Weil, Gotshal & Manges; Lauren Sawyer – Weil, Gotshal & Manges; Jacky Sin – Weil, Gotshal & Manges; Frank Tsui – Weil, Gotshal & Manges; Jacquelyn Volpe – Weil, Gotshal & Manges; Tricia Walsh – Weil, Gotshal & Manges; Hilary Wilkerson – Weil, Gotshal & Manges; Erica Yoon – Weil, Gotshal & Manges; Jie Yuan – Weil, Gotshal & Manges; John Zhang – Weil, Gotshal & Manges; Ami Zweig – Weil, Gotshal & Manges;

Law Firms: Davis Polk & Wardwell; Delphi Advokatfirman; Hannes Snellman; Kirkland & Ellis; Latham & Watkins; Weil, Gotshal & Manges;

Clients: Citigroup Inc.; Gores Guggenheim, Inc.; Guggenheim partners LLC; Polestar;

Federica Tiefenthaler

Author: Federica Tiefenthaler