ZURICH, Switzerland — ABB E-mobility announced that it has signed an agreement with four minority investors to raise an additional CHF325 million [USD $355.40 million] in funds, in exchange for a total shareholding of approximately 12 percent in the company. This transaction represents the second and final part of ABB E-mobility’s pre-IPO private placement of newly issued shares and is expected to close in the beginning of February 2023.
The investors taking part in the second round are BeyondNetZero, the climate solutions fund of General Atlantic, a leading global growth equity firm; GIC, a global institutional investor and Singapore’s sovereign wealth fund; Just Climate, a UK-based climate-led investment firm founded by Generation Investment Management; and Germany-based Porsche Automobil Holding SE, a holding company with investments in the areas of mobility and industrial technology and core shareholder in Volkswagen AG and Porsche AG.
ABB E-mobility will use the proceeds to continue the execution of its growth strategy, driven by both organic and M&A investments in hardware and software. Following the second round, ABB remains a committed partner to ABB E-mobility with a shareholding of approximately 80 percent.
Through this private placement, ABB E-mobility has raised a total of approximately CHF525 million [USD $574 million] in funds for the E-mobility business, with both investment rounds based on the same company valuation and contractual terms. In November 2022, ABB E-mobility announced the closing of the first round of the pre-IPO private placement of approximately CHF200 million [USD $219 million]. This included participation from the long-term equity strategy fund of Interogo Holding, a foundation-owned international investment group based in Switzerland (which will be represented on the board of directors of ABB E-mobility), moyreal holding ag, a Swiss single-family office with a long-standing history in the automotive industry and advised by Helvetic Trust AG, and ABB E-mobility Chairman, Michael Halbherr.
ABB CEO Björn Rosengren said: “We are delighted to see investors sharing our strong confidence and trust in the E-mobility business growth story. Furthermore, ABB remains committed to our strategy to separately list the business subject to constructive market conditions.”
ABB E-mobility is a global market leader in building a zero-emission future, with smart, reliable and emission-free EV charging solutions. The company has significantly scaled up its business, also through a number of acquisitions and investments, including In-Charge, Chargelab and Numocity, as well as the opening of a state-of-the art production facility in Italy and its recent U.S. manufacturing footprint expansion.
Lilja, Morgan Stanley, and UBS acted as financial advisors and Lenz & Stähelin acted as external legal advisors to ABB on the two rounds of the private placement.
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