Brazil’s Embraer jumps on announcement of SPAC deal and NYSE listing

Shares of Brazil’s Embraer SA soared on news the planemaker had agreed to combine its electric aircraft subsidiary Eve with Zanite SPAC and list it on the New York Stock Exchange.

The transaction values Eve’s equity at $2.9 billion and will include the combination with Zanite Acquisition Corp and an additional investment by a group of investors that includes Embraer, Zanite, financial investors and strategic partners such as Azorra Aviation, BAE Systems, Republic Airways, Rolls-Royce and SkyWest Inc, Reuters report.

After the transactions, Eve, listed on NYSE under the ticker EVEX, will have a $512 million cash position that will be used to develop its flying taxi.

After announcing Eve’s listing, Embraer also announced new orders.

Florida-based Azorra, one of the Eve investors, ordered 200 electric vertical take-off and landing (eVTOL) aircraft from Eve.

Republic Airways, also an investor, placed an order for up to 200 evTOLs, aiming to implement an eVTOL network throughout the U.S. Central and East Coast markets.

Skywest, part of the same investor group, ordered 100 electric aircraft looking to develop a regional chain in the U.S., while BAE Systems will work with Eve to explore the development of its eVTOLs for the defense market.

Brazil-traded shares in Embraer jumped 16% at the open in Sao Paulo, to 23.08 reais.

Embraer will own more than 80% of Eve after the SPAC combination and additional investment from the group.

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