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Embraer flying taxi unit Eve, valued at $2.9 billion, to list on NYSE -Breaking

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© Reuters. FILEPHOTO: Brazilian planemaker Embraer SA can be seen at its headquarters in Sao Jose dos Campos (Brazil), February 28, 2018. REUTERS/Roosevelt Cassio

By Tatiana Bautzer

SAO PAULO (Reuters) – Brazilian planemaker Embraer SA (NYSE:) The companies announced Tuesday that they have agreed to list Eve, its electric-powered aircraft subsidiary with Zanite SPAC on the NYSE.

The deal values Eve’s equity as $2.9 billion. This includes the addition of Zanite Acquisition Corp to the group and an additional investment from a group that also includes Embraer. Zanite. Financial investors. Strategic partners include Azorra Aviation (OTC), Republic Airways and Rolls-Royce. SkyWest (NASDAQ:) Melbourne.

Eve will now have a cash balance of $512 million. This money will go to Eve’s development of her flying taxi. Eve is listed on the NYSE under ticker EVEX. Already, the company has a $5 billion order pipeline that includes 1,735 batteries-powered aircraft which take off vertically and land vertically.

Pre-orders were received from 17 different customers, including lessors as well helicopter operators and ridesharing businesses.

Following the SPAC and other investments from the group, Embraer owns 80% of Eve. According to Embraer CEO Francisco Gomes Neto, Eve’s cash position will be sufficient to finance the development of flying taxis through certification. This is anticipated to happen in 2025.

Gomes Neto indicated in an interview, that Eve may have many production sites in order to provide services to clients on different continents. But the location is still unknown. Gomes Neto predicts that Eve will be worth $4.5 billion by 2030 and account for 15% of the worldwide urban air mobility market.

Eve’s coCEO Jerry DeMuro was a former CEO of BAE Systems. According to him, the financing for the production phase would likely be through debt. Andre Stein is Eve’s co-CEO. He has been an Embraer executive since 2000.

Embraer will supply infrastructure for Eve. This includes the allocation of engineers to projects, test grounds, and equipment. DeMuro stated that this will help lower costs.

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