Brazil’s Embraer says subsidiary Eve in deal talks with Zanite SPAC

posted on 10th June 2021 by Eddie Saunders
Brazil's Embraer says subsidiary Eve in deal talks with Zanite SPAC

By Jamie McGeever, Reuters News

BRASILIA- Brazilian planemaker Embraer SA said its subsidiary Eve Urban Air Mobility Solutions has entered merger talks with Zanite Acquisition Corp, a special purpose acquisition company (SPAC), according to a securities filing on Thursday.

Eve, which is developing aircraft in the electric vertical take-off and landing (eVTOL) segment, is one of the first big bets from the EmbraerX innovation division.

The Thursday filing was in response to a Bloomberg News report that Eve and Zanite were in talks for a potential $2 billion deal.

Shares in Embraer were up roughly 13% in the morning trading after it confirmed the talks with Zanite, at 19.60 reais.

“This is positive news for Embraer as the Brazilian aircraft manufacturer has a market cap of US$2.5 billion and just Eve Urban Air Mobility alone could reach a market value of US$2 billion,” analysts at Bradesco BBI wrote in a note to clients.

Earlier this week, Eve announced a partnership with helicopter company Helisul Aviation to deliver up to 50 eVTOLs starting in 2026, analysts at Guide added.