Upcoming/New CFIUS Filing: CITIC Capital Acquisition Corp. and Quanergy Systems, Inc.
Status: Upcoming/New Filing
Acquirer: CITIC Capital Acquisition Corp. (Cayman Islands)
Acquired: Quanergy Systems, Inc. (US)
Value: US$1.4 billion
Industry: Autonomous Vehicles; Artificial Intelligence; Internet of Things
On June 22, 2021, Quanergy Systems, Inc., a US “provider of next-generation optical phased array (‘OPA’) technology focused on the automotive and Internet of Things (‘IoT’) markets,” and CITIC Capital Acquisition Corp. (“CCAC”), a publicly traded (NYSE: CCAC) Cayman Islands exempted special company functioning as a blank check company, “announced today that they have entered into a definitive agreement, providing for a business combination that will result in Quanergy becoming a publicly-listed company” through the merger with CITIC Capital Acquisition Corp.” (Press Release, CITIC Capital Acquisition Corp. Form 8-K, Ex-99.1, Jun. 22, 2021, SEC Filing.) “Existing Quanergy shareholders are rolling 100% of their equity in this transaction. Pro forma for the transaction, existing Quanergy shareholders will own approximately 72% of the combined company, while CCAC public shareholders will own approximately 20%, with the remaining ownership being comprised of PIPE investors and CCAC founder shares.” (Id.) According the press release, “CCAC is sponsored by CITIC Capital Holdings Limited,” a Chinese alternative investment management and advisory company. (Id.) The parties intend to file a declaration filing with CFIUS and the merger is conditioned on CFIUS Clearance. (See Sections 8.1(g), 9.1(d), Agreement and Plan of Merger, CITIC Capital Acquisition Corp. Form 8-K, Ex-2.1, Jun. 22, 2021, SEC Filing.)