Smith Electric Vehicles will partner with Hong Kong-based FDG Electric Vehicles to establish a joint venture (JV) in the US offering all-electric vehicles and fleet electrification services.
The FDG Electric Vehicles will contribute the US exclusive right to use its self-designed passenger van, mini bus, panel van and cab/chassis (at a USD30 million consideration) into the JV, while Smith Electric Vehicles will inject all of its US exclusive IP pertaining to electric vehicles and its current client base (at a USD40 million consideration).
In addition, the JV will enter into an exclusive sourcing agreement for electric vehicles’ SKD (semi-knocked down) kits and electric vehicle battery with the FDG Electric Vehicles, and the exclusive agreement of assembly and production with Smith respectively to entrust Smith to manufacture electric vehicles using the FDG Group’s SKD kits and batteries.
In the second phase, Smith Electric Vehicles will proportionally distribute all JV shares acquired from the agreement to its shareholders (accounting for 47.06% of JV’s shares). In addition, the JV will raise USD20 million from the market. After all transactions completed, the FDG Electric Vehicles will become the JV’s largest single shareholder (holding approximately 45.45% of JV’s issued share capital).
Smith Electric Vehicles is the leading manufacturer of zero-emission all-electric medium-duty commercial vehicles in the US with well-developed distribution network and after-sale services. Its clients include Pepsi Cola/ Frito Lay, FedEx, Coca Cola, etc. Having accumulated rich experience and data, Smith also has developed proprietary technologies covering battery management systems, automobile driving and control system, vehicle drive and control system as well as vehicle intra-networking.
Upon completion of the transactions, JV will become an electric vehicle agent which encompasses sound model design of electric vehicles, high-quality battery and electric vehicles’ SKD kits, advanced electric vehicle software technology and world-renown customer base. All electric vehicles sold to the relevant famous clients by JV in the future, will adopt the vehicle models designed by FDG as well as the electric vehicles’ SKD kits and power batteries produced by FDG. The Group’s electric vehicle products will be widely used by world-renown brands in the US market, which not only enhance FDG’s brand awareness, but also prove the quality of FDG’s electric vehicle products met the international high level standard.