X-energy Reactor Company and Ares Acquisition today announced an update to their business combination agreement that lowers the valuation of the transaction by about 14%.
Under the amended terms, X-energy's pre-money equity value has been revised to $1.8 billion from approximately $2.1 billion. By establishing a more attractive entry point for investors, X-energy and AAC believe the revised valuation reinforces the long-term value creation opportunity for, and the companies' alignment with, shareholders, according to a press release announcing the change.
The deal was announced in December.
Existing X-energy equity holders will roll 100% of their equity interests into the combined company. Institutional and strategic investors have invested or committed up to $148 million in financing, which combined with approximately $485 million of cash held in AAC's trust account as of March 31, assuming no redemptions, will result in $515 million of cash to the combined company balance sheet, after fees.
X Energy is a developer of small modular nuclear reactors and fuel technology for clean energy generation. Read more.