A SPAC that doesn't sound half bad- SPAQ
Spartan Acquisition Corporation III(SPAQ)
The first company we’ll look at is Spartan Acquisition Corporation III, a SPAC with a $683 million market cap and a target in the European electric vehicle (EV) charging market. EVs are widely considered the future of the automotive industry, and are prompting a great deal of investor interest now, as the sector is beginning to expand. Spartan is aiming at the pan-European EV charging market, and planning a merger with Allego Holding.
Allego holds a growing position in the European EV chargepoint market, with more than 26,000 charging stations in 12,000 public and private installations across 12 countries. The company’s work backlog – a key measure of future profitability – includes more than 500 secured premium sites, and Allego boasts a ‘substantial recurring user base.’
In the runup to the business combination, Allego and SPAQ have been securing funding and partnerships. One major institutional investment has come from Fisker (FSR), a US-based battery EV (BEV) manufacturer. Fisker is no stranger to SPAC combos, having gone public through one last year. The company has invested $10 million into the upcoming SPAQ-Allego merger.
In other news, Allego has entered a partnership with the major Japanese automaker Nissan, for more than 600 charge points across 16 European countries. The move gives Nissan a foothold in the European EV scene, and gives Allego access to Nissan’s popular EV models.
The coming merger is expected to raise over $700 million for the combined company, which will have a pro forma value estimated at $3.14 billion.
WHAT DOES THE SUBASH SAY!
In coverage for Benchmark, analyst Subash Chandra takes a bullish outlook, noting that “Allego generates significant revenues (~$100mm ‘21E) from owned and operated fast-charging stations across Europe and service contracts with customers such as Carrefours, REWE Nord, Geant Casino, Shell and Nissan.”
Chandra goes on to write, “Europe is the second largest EV market after China and multiples larger than the US. The market share of battery EVs (BEV) and plug-in hybrid EVs (PHEV) in September was 23% compared to 4% in the US. European EV growth could top 45% CAGR over next 5 years.”
These comments support a Buy rating for SPAQ, with a $16 price target suggesting a 62% upside potential for the coming year.
Spartan Acquisition Corporation III(SPAQ)
The first company we’ll look at is Spartan Acquisition Corporation III, a SPAC with a $683 million market cap and a target in the European electric vehicle (EV) charging market. EVs are widely considered the future of the automotive industry, and are prompting a great deal of investor interest now, as the sector is beginning to expand. Spartan is aiming at the pan-European EV charging market, and planning a merger with Allego Holding.
Allego holds a growing position in the European EV chargepoint market, with more than 26,000 charging stations in 12,000 public and private installations across 12 countries. The company’s work backlog – a key measure of future profitability – includes more than 500 secured premium sites, and Allego boasts a ‘substantial recurring user base.’
In the runup to the business combination, Allego and SPAQ have been securing funding and partnerships. One major institutional investment has come from Fisker (FSR), a US-based battery EV (BEV) manufacturer. Fisker is no stranger to SPAC combos, having gone public through one last year. The company has invested $10 million into the upcoming SPAQ-Allego merger.
In other news, Allego has entered a partnership with the major Japanese automaker Nissan, for more than 600 charge points across 16 European countries. The move gives Nissan a foothold in the European EV scene, and gives Allego access to Nissan’s popular EV models.
The coming merger is expected to raise over $700 million for the combined company, which will have a pro forma value estimated at $3.14 billion.
WHAT DOES THE SUBASH SAY!
In coverage for Benchmark, analyst Subash Chandra takes a bullish outlook, noting that “Allego generates significant revenues (~$100mm ‘21E) from owned and operated fast-charging stations across Europe and service contracts with customers such as Carrefours, REWE Nord, Geant Casino, Shell and Nissan.”
Chandra goes on to write, “Europe is the second largest EV market after China and multiples larger than the US. The market share of battery EVs (BEV) and plug-in hybrid EVs (PHEV) in September was 23% compared to 4% in the US. European EV growth could top 45% CAGR over next 5 years.”
These comments support a Buy rating for SPAQ, with a $16 price target suggesting a 62% upside potential for the coming year.
