Status: Mitigation; Clearance

Digital Car

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

UPDATE:  “On August 18, 2021, the Committee on Foreign Investment in the United States (the “CFIUS”) informed the parties in writing that after reviewing the information provided by the parties regarding the Transaction, that CFIUS concluded that the Transaction is not a covered transaction and therefore not subject to review by CFIUS. This notification from CFIUS satisfies the CFIUS Clearance condition in the Merger Agreement.” (CITIC Capital Acquisition Corp. Form 8-K, Aug. 20, 2021, SEC Filing.)

Posted June 23, 2021

Status: Upcoming/New Filing

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.)

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