Electric truck maker Nikola Corp. (Nasdaq: NKLA) of Phoenix said its planned acquisition of Cypress-based battery maker Romeo Power (NYSE: RMO) will proceed, after Romeo Power shareholders tendered just over half of the company’s outstanding shares.
In August, Nikola said it had agreed to acquire Romeo Power for $144 million in stock. The deal was contingent on a tender offer to Romeo shareholders: Investors had to “tender,” or exchange, at least half of Romeo’s shares outstanding by midnight Wednesday for the deal to proceed.
Nikola said in statement that 93.16 million Romeo shares, representing about 50.1% of the company’s total shares outstanding, had been tendered by the deadline – just enough to complete the deal.
Once the transaction is completed, Romeo will become a wholly owned subsidiary of Nikola and Romeo common stock will no longer be listed or traded on the New York Stock Exchange.
Shares in Nikola were down 1.2% to $2.96 apiece for a market cap of $1.3 billion, while Romeo Power rose 5.3% to 36 cents each for a market cap of $66 million.
For more on Nikola’s purchase of Romeo Power, see the Oct. 24 print edition of the Business Journal.