(Reuters) -U.S. blank-check firm Plutonian Acquisition Corp agreed to merge with Big Tree Cloud International Group for the Chinese personal care products company to go public in a deal that will value the combined enterprise at about $500 million.
The transaction, valued at a price of $10 per share, is expected to be completed in the first half of 2024, pending procedures including approvals from the U.S. Securities and Exchange Commission and the Nasdaq Stock Market, the companies said in a joint statement on Tuesday.
After the completion of the merger with the special purpose acquisition company, Big Tree Cloud International Group will be operated under a holding entity named Big Tree Cloud Holdings Ltd and listed on the Nasdaq Stock Market, according to the statement.
The proceeds from this transaction will be used for working capital and general corporate purposes, the statement added.
Big Tree Cloud, based in the southern Chinese tech hub Shenzhen and founded in 2020, focuses on feminine hygiene products like sterilized feminine pads and menstrual pants.
“The proposed business combination with Plutonian Acquisition will enable us to accelerate our effort of accomplishing our mission of offering premium personal care products to consumers and expanding our product portfolio beyond feminine care,” said Big Tree Cloud founder Wenquan Zhu.
(Reporting by Rishabh Jaiswal in Bengaluru and Roxanne Liu in Beijing; Editing by Rashmi Aich and Subhranshu Sahu)
