Aviation
Commercial /
Brazil
alternative for the future
Embraer bets on "flying cars"
Reprodução/Embraer
Gabriela Ramos
6/15/2021
Embraer is under discussion as to whether Embraer could shift into the recently announced merger between SPAC (Special Purpose Acquisition) Zanite Acquisition and its electric lift-and-land vehicle subsidiary, Eve Urban Air Mobility. In addition, the possibility of listing Eve, valued at $2 billion, in Ágora Investimentos is also being studied.
Such action seems to inspire confidence and arouse optimism, as there was an increase in Embraer's share price, with the potential to reach an increase of approximately 40%. Agora now recommends buying rather than selling.
Even a potential IPO in the United States can be triggered by the deal.
Analysts Victor Muzisaki and Wellington Lourenço say they see “this potential transaction as likely given that three mergers and acquisitions involving eVTOLS (Electric Landing and Vertical Takeoff Vehicles) and SPACs have already been announced by other participants with similar valuations since early 2021 ”.
Zanite Acquisition is seeking to raise capital to finance the deal with Embraer. The merged company is expected to be valued at approximately $2 billion.
According to Ágora analysts, “in the event of a merger and acquisition, this would be part of Embraer's strategy to invest in new products, but also to share part of the development risk. Zanite raised $230 million in equity in November 2020, which could be used to support the development of eVTOL (flying cars in popular parlance) aircraft.”
Details of the business plan were not disclosed by Embraer, Eve or Zanite, but analysts estimate that Embraer's share price could change by BRL 0.69 for every $100 million in the pre-currency valuation.
Sacha Verheij/Unsplash
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Gabriela Ramos
Gabriela is the latest addition to the editorial team of our website, having provided us with her solid background in editing, publishing and photography, and her interest and training in aviation history and historiography. His good taste and common sense and great cleverness and sagacity in the selection of themes and materials greatly enriched our vocabulary and narrative style. Gabriela brought unusual predicates and came to stay, helping to point the way of success of our portal.
   
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