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(Adds details on flotation, unveiling of seven-seater Lilium
Jet)
By Douglas Busvine
BERLIN, March 30 (Reuters) - German air shuttle startup
Lilium said on Tuesday it would float on the U.S. stock market
via a reverse merger with Qell Acquisition Corp, a
blank-cheque acquisition company, in a deal valuing the combined
business at $3.3 billion.
Munich-based Lilium is in a race with other aviation
companies to deploy battery-powered aircraft that can take off
and land vertically, offering a new way for travellers to beat
traffic and hop between cities.
It joins U.S. rival Joby in merging with a listed shell
company to attract fresh capital at multi-billion-dollar
valuations, on top of hefty funding already raised from venture
capital backers.
Lilium said the combination with Qell, led by Barry Engle,
former president of General Motors North America, would
support its objective of launching commercial operations in
2024.
"In Qell, we have found a partner who shares our ambition
for sustainable mobility and brings tremendous experience in
running mobility and hardware businesses," Daniel Wiegand, CEO
and co-founder of Lilium, said in a statement.
Total gross proceeds are expected to be $830 million,
including $380 million held in trust and proceeds from a $450
million private placement.
Investors in the placement include fund manager Baillie
Gifford, funds and accounts managed by BlackRock,
Tencent, Ferrovial, LGT, Palantir,
FII Institute, private funds affiliated with PIMCO and Atomico.
NEW SEVEN-SEATER
In addition to its five-seater prototype, the company also
unveiled a seven-seater model which it said was the most
economically viable for the regional trips that will be its
mainstay business.
The seven-seater Lilium Jet will be the first model to go
into serial production. It will have a cruising speed of 175
miles per hour (280 kph) and a range of more than 155 miles (250
kilometres).
It received the CRI-A01 certification basis from the
European Union Aviation Safety Agency last year.
Lilium rival Joby has already announced plans to go public
via a $6.6 billion deal to merge with Reinvent Technology
Partners, a U.S.-listed shell company.
German air taxi startup Volocopter also plans to raise fresh
funds, CEO Florian Reuter said this month, adding that a deal to
go public via a special purpose acquisition company (SPAC) was
one option.
Lilium intends to launch its first network in Florida, where
it will site its first Vertiport at Lake Nona, a smart city
being built near Orlando International Airport.
The combined company will add Engle to the board, joining
current members including Tom Enders, former CEO of Airbus
.
JP Morgan and Barclays advised Qell while Citi advised
Lilium. The three banks acted as lead placement agents for the
private placement.
(Reporting by Douglas Busvine, editing by Emma Thomasson and
Susan Fenton)
