Samvardhana Motherson Acquires Stake in REE Automotive

Samvardhana Motherson International Ltd (SAMIL) is set to acquire an 11% stake in Israel's REE Automotive Ltd for up to USD 15 million. This investment will see the subscription of Class A ordinary shares and a supply chain agreement to bolster REE's modular platform for commercial electric vehicles.

Samvardhana Motherson International Ltd (SAMIL) announced on Monday that it will acquire an 11 per cent stake in Israel's REE Automotive Ltd for up to USD 15 million. This strategic move will be executed through SAMIL's wholly-owned subsidiary MSSL Consolidated Inc, which will subscribe to 36,39,010 Class A ordinary shares of REE Automotive Ltd.

Each share is priced at USD 4.122, equating to an 11 per cent ownership on a fully-diluted basis, according to a regulatory filing. REE Automotive is known for its pioneering 'REEcorner' technology, which integrates various vehicle systems into a compact, modular platform specifically designed for commercial electric vehicles.

SAMIL will also enter into a supply chain management agreement with REE, aiming to accelerate industrialisation through a mutually beneficial commercial structure. Both companies will leverage their manufacturing capabilities to support full vehicle assembly, including the assembly of 'P7 electric' trucks in the US.

(With inputs from agencies.)